Technical Analysis of GBP/CAD for March 28, 2016
After forming a double bottom near the 1.8500 support level, GBP/CAD started rising and formed a strong resistance near 1.8660. The resistance did not hold for a long time and was broken together with the 261.8% retracement trendline of the Fibonacci channel.
The Fibonacci retracement applied to the first corrective wave after the resistance breakout shows that price has not tested the 261.8% resistance level while 161.8% was broken. Today, price bounced off the S1 support and this could indicate that pair is ready to move further up.
Consider buying GBP/CAD on any small pullbacks towards S1, targeting either R1 (1.8790) or R2 (1.8855) as a final target. The stop loss should be just below S1.
Support: 1.8730, 1.8690
Resistance: 1.8790, 1.8855
The material has been provided by InstaForex Company - www.instaforex.com