GBP/CAD 1H Chart 11/26/2012 11:05AM EDT
Retracement targets: When you look at the 4H chart, you see that this is 38.2% retracement of a downswing late Oct-early Nov. The market has been consolidating for a while now, with resistance at 1.60, near the 50% retracement. Looking at the 4H RSI, the development is similar to that in the 1H chart, where the preceding bearish momentum is lost as the reading pushes above 60. A slightly more aggressive retracement target could be the 61.8% level at 1.6040.
At this point, a break below 1.59 should be seen as a strong bearish attempt that shelves the retracement outlook. A break below the channel we see in the 1H chart opens up the lows around 1.5850 down to the 1.5814 low.