The British Pound is trading against the Canadian Dollar in the medium-term descending channel, which began to form after the currency pair touched and rebound from the 38.2% Fibonacci retracement level at 1.7836. The retracement levels for this pair are measured by connecting the 2016 high and low levels. At the present moment, the pair is aimed to reach the upper trend line of the pattern. However, on its way up the currency exchange rate has to encounter the resistance of the weekly PP at 1.7659 and 100-period SMA at 1.7663. Hence, if the pair will not manage to break through it, a falling wedge may form, which could lead to breaking of the channel in the first half of June.
| Level | Rationale | Indicator | 4H | 1D | 1W | |||
| R4 | 1.7680 | Upper Bollinger Band | MACD (12; 26; 9) | Sell | Sell | Sell | ||
| R3 | 1.7659/63 | Weekly PP; 100-period SMA | RSI (14) | Sell | Buy | Buy | ||
| R2 | 1.7612 | 55-period SMA | Stochastic (5; 3; 3) | Neutral | Neutral | Neutral | ||
| R1 | 1.7571 | 20-period SMA | ADX (14) | Sell | Sell | Sell | ||
| S1 | 1.7495 | Weekly S1 | CCI (14) | Neutral | Buy | Buy | ||
| S2 | 1.7472 | Trend line | AROON (14) | Neutral | Buy | Neutral | ||
| S3 | 1.7463 | Bottom Bollinger Band | Alligator (13; 8; 5) | Buy | Buy | Buy | ||
| S4 | 1.7368/60 | Weekly S2; 200-period SMA | SAR (0.02; 0.2) | Sell | Buy | Buy | ||
| Aggregate | ↘ | ↗ | ↗ |