GBP/CAD 1H Chart: Pound hinders near channel line
The movement of GBP/CAD has been guided by two ascending channels. The senior channel was formed mid-2017, while the junior one has confined the pair’s strong appreciation since early 2018.
The Sterling reversed from the upper boundaries of both channels at 1.84 on March 19—its highest positioning against the Loonie after the Brexit vote. The rate has since edged lower down to the 1.8055 mark.
It is expected that the Pound continues its movement in the senior channel and thus pushes lower in the medium term. In the short term, however, bulls might not be ready to give up their positions that easily following a three-month surge. Thus, some upside potential could still be realised during the following days. Gains could be capped near the aforementioned high.
In case the price remains under the senior channel during the following hours, this might confirm that the Sterling is to fall during the following week, setting the 1.78 area as a possible target.
The Sterling reversed from the upper boundaries of both channels at 1.84 on March 19—its highest positioning against the Loonie after the Brexit vote. The rate has since edged lower down to the 1.8055 mark.
It is expected that the Pound continues its movement in the senior channel and thus pushes lower in the medium term. In the short term, however, bulls might not be ready to give up their positions that easily following a three-month surge. Thus, some upside potential could still be realised during the following days. Gains could be capped near the aforementioned high.
In case the price remains under the senior channel during the following hours, this might confirm that the Sterling is to fall during the following week, setting the 1.78 area as a possible target.