GBP/CAD is trading in the red right now at 1.7180 level after failing to stabilize above the former high of 1.7206 level. Technically, the pair could decrease a little in the short term before resuming its growth.
The pair has escaped from an extended sideways movement, from a continuation pattern. The Loonie is strong right now as the Canadian CPI increased more than expected. The UK will publish its Retail Sales data tomorrow. The Pound could start increasing again if the data comes in better than expected.
Technical Analysis!
GBP/CAD has found temporary resistance at the 50% retracement level and now is traded back below the R1 (1.7194). The 1.7176 and the 1.7150 are seen as strong support levels. The resistance levels have turned into support.
Coming back above the R1 (1.7194) and making a new higher high could signal an upwards continuation. Technically, the upside breakout from the extended range signaled a broader growth ahead.
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