GBP/CAD
GBP/CAD traded sharply higher today, breaking above the downside resistance line drawn from the peak of March 10th. However, that rate still stays within the consolidative zone that has been containing most of the price action since March 18th. That area is between the 1.6610 and 1.7020 barriers. Although there are decent chances for some further advances, we would stay neutral for now and we would start looking north as soon as the upper bound of that consolidative zone gets broken.
Such a break may wake up more bulls, who could decide to climb towards the high of March 18th, at around 1.7255. They may decide to take a break after reaching that zone, thereby allowing a small retreat. However, as long as such a retreat stays limited above the 1.7020 hurdle, we would expect buyers to recharge and shoot again. This time, they may breach the 1.7255 level and perhaps put the 1.7430 obstacle on their radars. That barrier is marked as a resistance by a small intraday swing high formed on March 13th.


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