The British Pound has appreciated by about 4.72% in value against the Canadian Dollar since October 10. The currency pair breached May 31 high level at 1.7093 during last week’s trading sessions.
From a technical point of view, a slight downside potential will likely dominate the exchange rate in the shorter term. The GBP/CAD pair might aim at the 1.6500 area.
Though, it is important to note that the currency exchange rate would have to surpass a support cluster, formed by the combination of the weekly S1 and the monthly R1 near the 1.6667 area.
Thus, an expected advance might not be immediate. If the given level holds, a reversal north could likely occur.
