The GBP/CAD has risen by more than 430 pips in October after changing its old downward direction to an uptrend in September, so that we recommended buying the pair in our last report from October 10 at 1.6500, and the prices hit our targets at 1.5710 and 1.6850 with more than +350 pips.
The pair is trading now inside an ascending price channel and near to the lower limit. In addition, the pair broke the downward trendline last month and is retesting it now at the current level, but we can’t buy now because the pair is still trading at the resistance area 1.6720. We have to wait for a candle to close above this level. We have a support area that confirms our positive vision for the pair at 1.6630 from last month. The prices have been moving now above the moving average for the last 50 days.
If we took a look at the H4 chart we can notice a positive divergence between the bottoms on the chart and the bottoms on the MACD indicator so that we can take buy positions now.
The Next Few Days
From this analysis of the daily and H4 charts, we have to see a candle close first above 1.6725 and then we can buy there, keeping our first target at 1.6880 and the second one at 1.7050 - that is in case the prices are still trading inside the price channel.
This week the markets don’t offer much news that will affect the GBP/CAD except for two figures: the first is BOC Governor Poloz's speech and the second one is the Manufacturing Production from the UK on Friday.
