GBP/CAD may rise 53 - 79 pips

Our pivot point stands at 1.7649.

Our preference

The upside prevails as long as 1.7649 is support.

Alternative scenario

The downside breakout of 1.7649 would call for 1.7606 and 1.7580.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 1.7667 and 1.7642). Finally, the GBP/CAD has crossed above its upper Bollinger band (1.7684).

Supports and resistances

1.7820 **

1.7794 *

1.7769 **

1.7743

1.7690 last

1.7666

1.7649 **

1.7606 *

1.7580 **

Number of asterisks represents the strength of support and resistance levels.