GBP/CAD likely to edge lower
After reaching its three-month high at 1.6772, the Sterling started to depreciate against the Canadian Dollar in a falling wedge. The pair has already provided several confirmations of the bottom line; upper boundary, however, still needs one confirmation.
The pair has been stranded between the 55– and 100-hour SMAs and the weekly PP from below and the 200-hour SMA from above for several hours, thus failing to initiate a new wave down. It is expected that the latter should hold the pair; thus, a breakout to the upside is the most likely scenario.
Apart from the aforementioned support cluster, the next important downside barrier is the weekly S1 at 1.6240. However, the rate might halt slightly higher—near the 50.0% Fibonacci retracement located at 1.6318.
In case an upside breakout is nevertheless to occur, the northern side is restricted by the weekly R1, R2 and R3.
The pair has been stranded between the 55– and 100-hour SMAs and the weekly PP from below and the 200-hour SMA from above for several hours, thus failing to initiate a new wave down. It is expected that the latter should hold the pair; thus, a breakout to the upside is the most likely scenario.
Apart from the aforementioned support cluster, the next important downside barrier is the weekly S1 at 1.6240. However, the rate might halt slightly higher—near the 50.0% Fibonacci retracement located at 1.6318.
In case an upside breakout is nevertheless to occur, the northern side is restricted by the weekly R1, R2 and R3.
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