GBPCAD Technical Analysis (6th Feb.)

The USDCAD pair is seeing a slight increase on Thursday, trading around 1.4345 after bouncing from a two-week low of 1.4270. The US Dollar has regained some strength after three days of losses while falling oil prices are putting pressure on the Canadian Dollar. However, the US Dollar’s gains remain limited as traders expect the Federal Reserve to ease the policy further. On the technical side, the pair is facing key support near 1.4260, and a drop below this level could trigger further declines toward 1.4200. On the upside, resistance is near 1.4400, and a breakout above this level could push prices higher toward 1.4500.

GBPCAD – D1 Timeframe

The daily timeframe chart of GBPCAD shows the price already taking off from the supply zone at the tip of the SBR pattern and the 88% Fibonacci retracement level. However, the price created a large momentum candle, indicating the likelihood of a fair value gap within the impulse candle. Based on this, we will check the lower timeframe chart for details of the FVG, which should provide room for a bearish continuation entry.

GBPCAD – H4 Timeframe

The 4-hour timeframe chart of GBPCAD reveals the FVG area within the daily momentum candle and that the FVG region overlaps the 76% Fibonacci retracement level. The target for the bearish price action is the last low, as seen on the chart.

Analyst’s Expectations: 

Direction: Bearish

Target: 1.74432

Invalidation: 1.82096

CONCLUSION

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