The British Pound is trading against the Canadian Dollar in the descending channel. The pattern has formed in the middle of last week, as the pair broke through the bottom trend-line of the short-term ascending channel. The last trading days showed that fluctuations of the rate became narrower, which indicates on formation of the falling wedge. For this reason, it is likely that the currency pair will rebound from the lower highs near 1.7600 and direct towards the bottom edge of the descending channel. However, there is also a possibility that the rate will make a break out from the wedge under the pressure from weekly S1 located at the 1.7582 level.
| Level | Rationale |
Indicator |
30M | 1H | 4H | |||
| R4 | 1.7700/02 | Weekly PP; 200-period SMA | Sell | Sell | Sell | |||
| R3 | 1.7690 | Trend line | RSI (14) | Sell | Sell | Sell | ||
| R2 | 1.7665 | 100-period SMA | Stochastic (5; 3; 3) | Neutral | Neutral | Neutral | ||
| R1 | 1.7630 | 55-period SMA | ADX (14) | Sell | Sell | Sell | ||
| S1 | 1.7582 | Weekly S1 | CCI (14) | Neutral | Neutral | Sell | ||
| S2 | 1.7564 | Bottom Bollinger Band | AROON (14) | Sell | Neutral | Neutral | ||
| S3 | 1.7528 | Trend line | Alligator (13; 8; 5) | Buy | Buy | Buy | ||
| S4 | 1.7487 | Weekly S2 | SAR (0.02; 0.2) | Neutral | Sell | Sell | ||
| Aggregate | ↘ | ↘ | ↘ |