Forex technical analysis: GBPCAD tests a key support level. Buyers leaning.

Big move down but stalls at key support.The GBPCAD has moved sharply to the downside today. The pair is down 1.79% currently. The low reached 1.6713. The pair trades at 1.6729 currently.

To buy after such a move is like catching a falling knife.   However, the caveat is that the low is stalling at a pretty juicy level. 

  • The 200 day MA is at 1.67011
  • The 100 bar MA on the 4-hour chart is at 1.67115
  • The swing highs from October 23rd and 24th come in at 1.6712. 

The low price at 1.6713 suggests someone was willing to catch that falling knife as risk could be defined and limited.
Is it a buy?  Who knows whether the key support will be broken or not. However, risk can be defined and limited, and there are traders who will lean against the cluster of support with a stop below.  The pair moved over 350 pips lower today.  A correction may be in the cards for a least a portion of that move.  
Look for traders on dips to lean against the 1.6701-12 level with stops below.

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