GBP/CAD 4H Chart: Rectangle

A rectangle proved to be a transitory pattern, which caused a temporary stabilisation in the broader context of the Sterling's general downtrend. This is usually a reversal pattern, but the bearish strength is dominating at the moment. They managed to breach the 1.9885 mark, namely the green horizontal trend-line. Now the outlook is heavily negative towards GBP/CAD. This is additionally affirmed by the fact the pair has tested the Oct 2015 low at 1.9734. Technical studies maintain a bearish bias, while 58% of all SWFX transactions are short. It proclaims that the cross is heading in the direction of July 2015 low at 1.9326, with an intermediate demand offered by the monthly S1 at 1.9547.