Pressure Mounts on GBP/CAD’s Long-Term Support

By Tomasz Wisniewski|

Published: March 27 2024, 06:20 GMT+0

Pressure Mounts on GBP/CAD’s Long-Term Support

In today’s analysis, we delve into the long-term technical setup of the British Pound against the Canadian Dollar, spotlighting the dynamics since July 2023 through a daily chart perspective. The chart presents an ascending triangle pattern, defined by a horizontal resistance around 1.731 (marked in yellow) and dynamic support through a black uptrend line connecting higher lows since September 2023.

March brought significant activity with an attempt to break above the resistance, which proved unsuccessful as the price retreated, followed by a robust bounce off the support underscored by a notable hammer candlestick in blue. As the lines of the triangle converge, indicating the narrowing of the pattern, the market stands on the brink of a decisive movement. A breakout above the yellow resistance suggests a bullish opportunity, signaling a potential long position, while a breach below the black support line could initiate a sell-off.

Given the ongoing pressure from sellers testing the resilience of the support line, the likelihood tilts slightly more towards a bearish breakout. However, the market’s direction will ultimately hinge on the impending breakout, marking a critical juncture for long-term traders of this pair.