The Pound Sterling has been appreciating against the Canadian Dollar since the end of October after the pair bounced off its bottom border of an ascending channel at 1.6650. However, this appreciating was halt by a resistance level formed by the upper boundary of a dominant descending channel at 1.7250.
A breakout through the lower boundary of a three-week descending channel occurred this morning.
Given that a breakout has occurred, the currency exchange rate is likely to continue its decline during the following trading sessions. The potential target for bearish traders will be at a price base of 1.6800.
