GBP/CAD has been guided by several patterns. The dominant pattern is an ascending channel which was formed mid-August. Along the way, the Sterling breached a long-term channel down which is apparent on the daily chart.
Meanwhile, the pair’s movement during the past two weeks has been guided by another short-term ascending channel.
The current positioning of the pair demonstrates that there is still some upside potential until the upper channel boundary circa 1.73. This area is reinforced by the monthly R3 and the weekly R1 and thus could be a possible turning point.
Subsequently, the rate is expected to trade southwards (given the diminishing trading range in the junior channel), setting the 1.68 area as a possible downside target for the upcoming week.