GBPCAD 1.9592: Bullish – Rallies to new 7-year highs

GBPCAD rallied strongly to make a new 7-year high at 1.9664 (June 30, 2015), retracing over 50% of the entire 2.3564/1.4829 fall (January 2007 peak/May 2010 trough). A break above 1.9664 would signal a 10-week rising wedge breakout, triggering further strength towards 2.0155 (June 26, 2006 low) ahead of 2.0222 (61.8% of the 2.3564/1.4829 fall). However, overbought condition requires caution. A pullback to 1.9314 (June 29, 2015 higher low) near the rising trendline cannot be ruled out. While the latter holds, the uptrend remains. Below 1.9314 would prolong consolidation and expose the 1.9219 1.9192 support zone which should underpin.

Outlook:
Short term: bullish
Long term: bullish