GBP/CAD 4H Chart: Channel Up

We took a look at this particular bullish pattern yesterday, when the currency pair was testing the rising support line at 1.6691. As it turned out, the lower boundary of the corridor, together with the 200-period SMA and the weekly S1, held the price and provided enough support to initiate a rally, which is now supposed to target 1.7085—the upper positively-sloped trend-line.

However, neither the near-term technical indicators (four-hour and daily) nor the sentiment of the SWFX market participants (63% are short on the pair) are in favour of the surge, meaning that GBP/CAD may again stop in the middle of the pattern, as it did on Nov 6.