GBP/CAD 4H Chart: Channel Up

By connecting the peaks and valleys of the past 200 bars we may draw two rising trend-lines that are likely to prove significant in the future. While the lower line at 1.6625, together with the long-term moving average, is expected to limit the possible losses, the upper line, currently at 1.7070, is supposed to mark the potential points for bearish corrections for the overall up-trend.

Among the reasons to believe that the Sterling will be able to maintain the current trajectory is the four-hour and weekly technical indicators, most of which are bullish at the moment. On the other hand, a substantial majority of the SWFX traders are currently short on GBP/CAD, namely 68% of them.