GBP/CAD Price Analysis: Bears stepping in and eye break of 2022 lows for sessions ahead
|- On the hourly chart, GBP/CAD is moving in on the 61.8% golden ratio.
- A break below 1.6900 opens risk to the 1.6830s daily target.
GBP/CAD pierced the 2022 lows (1.6948) on Tuesday but has corrected back above them to post a corrective New York session high of 1.69774. From both a daily and shorter-term perspective the bias is tilted to the downside as illustrated in the following top-down analysis:
GBP/CAD weekly & daily charts
The weekly chart shows that the price has already mitigated an imbalance of the daily drop as follows:
Last week's candle shows that the price rallied to 1.71035. Therefore, the path of least resistance could now be to the downside on a break of 1.6897 with eyes to 1.6835.
GBP/CAD H1 chart
On the hourly chart, the price is reaching up into the 61.8% golden ratio territory. Should this hold as resistance, then the focus will be on the downside for a test and break of the lows for the sessions ahead. A break below 1.69 the figure opens risk to the 1.6830s daily target as illustrated above.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.