GBP/CAD edged higher today and it could escape from a short-term range pattern. A valid breakout could bring a new opportunity as the pair will try to approach and reach new highs.
The pair has moved sideways lately as the sentiment may change. The price actions could indicate a bullish reversal soon.
GBP/CAD was trapped within a minor and narrow range after escaping from the down channel. The breakout above the downtrend line signaled that we may have a bullish reversal.
The price has tested and retested the 61.8% retracement level confirming it as strong support. The rejections from this level signaled that the downside movement is over and that the pair may develop a leg higher.
An upside breakout from this narrow range could attract more buyers and could offer us a new long opportunity.