Seller may target the 1.7300 level: GBP/CAD technical analysis
12:36, 7 May 2020
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The GBP/CAD pair has started to turn lower on the foreign exchange market, as the British pound weakens across the board.
GBP/CAD technical analysis shows that a bearish head and shoulders pattern is pointing to losses towards the 1.7300 level in the near-term.
GBP/CAD medium-term price trend
The GBP/CAD pair has started to turn lower as the British pound weakens as UK economic PMI data deteriorates.
GBP/CAD analysis shows that the pair remains technically bullish over the medium term while price trades above the 1.6950 support level.
The daily time frame continues to show that the GBP/CAD pair is trapped within an extremely large head-and-shoulders pattern.
Until the pattern either breaks to the downside or is invalidated, range bound trading between the 1.6500 and 1.8400 levels appears likely over the medium term.
According to technical analysis, a break above the 1.8000 level is needed to encourage buying towards the 1.8400 level.
To the downside, a loss of the 1.7200 may encourage sellers to test towards the 1.6500 level.
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GBP/CAD short-term price trend
GBP/CAD analysis shows that the pair is bullish over the short term while price trades above the 1.7370 level.
Looking at the lower time frames a bearish head and shoulders pattern has been activated.
According to the size of the pattern the GBP/CAD pair may decline towards the 1.7300 level over the near-term.
Watch out for more short-term losses in the GBP/CAD pair while price trades below the 1.7470 resistance level.
GBP/CAD technical summary
GBP/CAD analysis shows that a bearish pattern has been activated on the lower time frames. Medium-term analysis indicates that price is likely to trade within the 1.7200 to 1.8000 price range.