- GBP/CAD bulls are back in control and target an upside continuation.
- The head and shoulders have formed a bullish bias on the charts with price above old resistance.
As per the prior analysis, GBP/CAD Price Analysis: Bullish daily H&S in the makings, the market has shifted bullish and the targeted area can now be mapped out towards the 1.7720 area.
”The last price action has carved out some downside structure to a 61.8% Fibo which is exactly what the bulls were waiting for in order to enable a long to be taken protected by bullish structure.
However, in doing so, there is also a bearish structure that has been recently formed and nulls will want to see roof taken off before looking for an optimal entry point protected by a stop-loss below newly formed bullish structure.”
The daily head and shoulders are taking shape, which is just as well as the 4-hour chart’s conditions transformed into a bullish scenario for bulls to take the trade yesterday.
The target area is based on the daily correction’s range and measured by a Fibonacci retracement to the -272% level of 1.7718.