GBPCAD

The British Pound made headway against the US Dollar last week, but a surge in the US Dollar on Friday trimmed gains, ending around 1% higher. Before the late-week pullback, GBP/USD hit the highest level since mid-January before prices broke down from a Head and Shoulders pattern, falling to the 100-day Simple Moving Average.

A break lower could push prices down toward the yearly low at 1.3356. Alternatively, further strength would target the 161.8% Fibonacci extension, a level that served as resistance last week, before aiming at the high-profile 200-day SMA. The trend may favor a move lower this week, considering prices put in the third higher low since early January.