It’s been a roller coaster ride for GBPCAD. The pair has carved a huge range with a potential temporary base at 1.6300, and a potential temporary top at 1.800.
The daily chart above suggests that, since we are trading under the 1.7000 handle, we can expect lower lows extending towards the 1.6300 handle.
The long-term ascending channel (blue) is likely to stop prices moving higher until we see a break. The current channel pins a steeper range between 1.7000 and 1.6300. A fruitful break and close above 1.7000 could spur rallies towards the 1.7600 handle.
The next bull objective would then be a test of the 1.8000 handle.
We can also see a rejection of prices for three days in a row at the 1.7000 handle, putting pressure on the pair.
The 2-hour chart below suggests that prices are still pressured to the lower side for the time being. The 1.6670 level comes in as immediate support followed by the 1.6580.
A break under the latter exposes a run towards the lows of last week, with focus turning further lower towards the 1.6300 handle as indicated by the daily chart.
The 1.6920 comes in as an immediate resistance with a break higher putting the 1.7000 handle back into focus.
Overall, a test to around the 1.6300 level can potentially form a base for a rally to commence.