Sterling has been guided by an ascending channel against its Canadian counterpart since late September 2017. The pair bounced off the lower boundary of a dominant channel on September 11 and has since rallied against the Loonie.
The currency pair has moved closer to the border of a medium-term pattern and could be set for a breakout. From a theoretical point of view, a retracement south is likely. However, this retracement could find a support cluster set by the weekly PP and the 55– hour SMA near 1.7550.
Technical indicators suggest that the exchange rate is likely to continue its bullish movement in the nearest future.