GBP/CAD 1H Chart: Pound tests channel
The Pound’s movement against the Loonie during the past three months has been guided by an ascending channel, while in the short-term—two additional channels are at play. After testing the senior channel circa 1.7150 on November 1, the Pound began a new wave down.
Currently, the rate is trading near the upper boundary of this pattern at 1.7025. Technical indicators suggest that the psychological 1.70 level, likewise reinforced by the weekly R1, is likely to surrender under the bullish pressure. In case this scenario is to occur, the Pound should edge even higher, with the ultimate high restricted by the weekly R3 at 1.7340.
Conversely, bears might briefly take the upper hand after a two-week period of appreciation and thus push the pair down to the weekly PP at 1.6795.
Currently, the rate is trading near the upper boundary of this pattern at 1.7025. Technical indicators suggest that the psychological 1.70 level, likewise reinforced by the weekly R1, is likely to surrender under the bullish pressure. In case this scenario is to occur, the Pound should edge even higher, with the ultimate high restricted by the weekly R3 at 1.7340.
Conversely, bears might briefly take the upper hand after a two-week period of appreciation and thus push the pair down to the weekly PP at 1.6795.
