GBPCAD Must Clear Horizontal Resistance To Justify Its Strength
Thursday's hawkish outcome from Bank of England (BoE) meeting offered heavy additional strength to the GBP. As a result, the GBPCAD rallied to fortnight high; however, the pair couldn't clear 1.6350-55 horizontal-line and is still struggling with the same. Should overbought RSI refrain the quote from surpassing 1.6355 mark, the 1.6260 and the 1.6200 are likely nearby supports that traders can observe. In case if the pair drops below 1.6200, the 1.6130 and an upward slanting trend-line, at 1.6055, might try restricting its following downside, failing to which could direct the south-run towards the 1.5970, the 1.5930 and the 1.5880 consecutive rest-points.
Given the pair's successful break above 1.6355, it can quickly rise to 1.6400 and the 1.6430 resistance ahead of aiming the 1.6520, the 1.6555 and the 1.6575 north-side numbers. If at all Bulls continue dominating trade momentum after 1.6575, the 1.6600, the 1.6640 and the 1.6660 might act as intermediate halts before flashing 1.6720 on the chart.