Patterns: GBP/CAD, GBP/AUD
|GBP/CAD 4H Chart: Breaches channel pattern
The GBP/CAD currency pair has been appreciating in a descending channel pattern. This surge began after the Pound Sterling breached a support level formed by the weekly S1 at 1.6844.
The exchange rate tested the upper boundary of the descending channel pattern at 1.7079 during the Asian session on Monday.
Given that the currency exchange rate has breached the channel pattern, it is likely that the pair could aim for the monthly PP at 1.7204 today.
However, a resistance level formed by the 100-hour SMA at 1.7103 could restrict the British Pound from gaining further strength against the Canadian Dollar during the following trading sessions.
GBP/AUD 4H Chart: Testing 50– and 100-hour SMAs
The Pound Sterling has depreciated about 1.74% against the Australian Dollar since January 7. However, a support level formed by the weekly S1 at 1.7629 hindered the currency pair from further depreciation.
Currently, the exchange rate is testing a resistance cluster formed by the combination of the 50– and 100-hour SMAs at 1.7908.
If this cluster holds, the currency exchange rate will aim for the lower boundary of an ascending channel pattern at 1.7600 today.
However, if the pair passes the SMAs, the next target for bullish traders during the following trading sessions will be at the upper boundary of the channel pattern at 1.8295.
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