GBP/CAD 1H Chart: Channel Up

Dukascopy Bank Team Dukascopy Bank SA

GBP/CAD 1H Chart: Channel Up

Comment: After an uncharacteristic break of the upper trend-line of a descending triangle on the daily chart, GBP/CAD showed some more upside potential in a channel up pattern. The pair is currently testing the bottom boundary of the pattern and we expect it to bounce off and then target the top trend-line. There are, however, some downside risks to consider as well – the rate has set a potential double top at 1.6721 and is likely to have trouble in breaking it immediately. Most of the indicators cluster below the current rate and provide a solid ground for future movements, meaning that it is still more likely that northern levels require more attention.

EUR/SEK 1H Chart: Channel Up

Comment: EUR/SEK set a new half-year low on the daily chart in early February, but managed to abandon the area to show a more promising outlook on the hourly chart. A channel up put an end to the small-scale down-wave and will require some more tests to confirm its significance. The pair is currently squeezed in between several levels mid-pattern and we expect the motion to remain northward-directed until the upper trend-line is reached at 9.5466. After the current corrective area is overstepped, 9.5316 and 9.5414 will be the main levels to watch on the pair’s way up.

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