Technical Analysis – GBPCAD hits a wall but bulls not ready to give up
April 17, 2024 3:26 pm
GBPCAD keeps knocking on 1.7238 door
But bulls unable to break through it yet
Momentum stays positive for now
GBPCAD has been trying to get past the tough wall around 1.7238 for more than a week now, but each time it has been knocked back. However, after dipping below its 50- and 20-day simple moving averages (SMA) in the preceding days, positive momentum has been restored.
The stochastics have turned upwards and are positively aligned, while the RSI has recovered above the 50 neutral level.
If the bulls succeed in cracking the 1.7238 resistance, attention would turn to the March peak of 1.7341. Higher up, the next target is likely to be the 1.7500 level before aiming for the 123.6% Fibonacci extension of the August-September 2023 downtrend at 1.7678.
To the downside, there is immediate support from the 50- and 20-day SMAs at 1.7154 and 1.7136, respectively, with the 78.6% Fibonacci retracement of 1.7108 acting as a further obstacle ahead of the ascending trendline. A breach of the ascending trendline would bring the 200-day SMA into scope near the 1.7000 level.
In brief, a climb above 1.7238 would strengthen the bullish momentum, increasing the prospect of resumption of the longer-term uptrend. But failure to break this wall would see the uptrend line being tested again.
GBPCAD keeps knocking on 1.7238 door
But bulls unable to break through it yet
Momentum stays positive for now
GBPCAD has been trying to get past the tough wall around 1.7238 for more than a week now, but each time it has been knocked back. However, after dipping below its 50- and 20-day simple moving averages (SMA) in the preceding days, positive momentum has been restored.
The stochastics have turned upwards and are positively aligned, while the RSI has recovered above the 50 neutral level.
If the bulls succeed in cracking the 1.7238 resistance, attention would turn to the March peak of 1.7341. Higher up, the next target is likely to be the 1.7500 level before aiming for the 123.6% Fibonacci extension of the August-September 2023 downtrend at 1.7678.
To the downside, there is immediate support from the 50- and 20-day SMAs at 1.7154 and 1.7136, respectively, with the 78.6% Fibonacci retracement of 1.7108 acting as a further obstacle ahead of the ascending trendline. A breach of the ascending trendline would bring the 200-day SMA into scope near the 1.7000 level.
In brief, a climb above 1.7238 would strengthen the bullish momentum, increasing the prospect of resumption of the longer-term uptrend. But failure to break this wall would see the uptrend line being tested again.
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