- 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.
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