The downward trend in GBP/CAD appears to have stalled at the S2 Pivot Point line, or around 1.7130. In this instance, the 200 SMA support on the 4-hour chart corresponds with the S2 support as well.
More significantly, however, the decline in GBP/CAD halted just above an ascending channel support that hasn't been broken since the year's beginning.
Is there a chance for the trend to continue here? Keep an eye out for bullish candlesticks at S2, as they may attract more bulls in the GBP/CAD pair and prolong its 2024 upward trend.
The pair may be headed for a move to the mid-channel resistance at 1.7250 if bullish momentum begins to build. If a fundamental catalyst drives the technical bounce higher, we might even witness the pair reach its previous highs around 1.7350!
But we wouldn't rule out a protracted decline in the GBP/CAD exchange rate. The GBP/CAD pair may continue to decline if traders take into account Canada's comparatively positive news releases or if oil prices linked to the Canadian dollar surge once again.
Keep an eye out for sustained, unambiguous trading below the S2 support, as this might lead to a breakout below the channel pattern we've found.
