GBP/CAD to race higher towards 1.7080/85 on a move above 1.6910 – Scotiabank

GBP/CAD price action has turned somewhat choppy. Price action hints at a possible rebound towards the 1.7080/85 region on a break above the 1.6910 level, economists at Scotiabank report.

Support at 1.6740 holds the downside

“Trend momentum signals are aligned bearishly for the GBP across the longer run DMI oscillators. This is precluding a significant rally in the GBP at this point. However, support at 1.6740 looks relatively firm and the two rebounds from that level have set up a potential double bottom (bullish above 1.6910 for a retest of the 1.7080/85 area).” 

“A clear move through 1.6840/45 trend resistance would serve as a ‘heads up’ that the pound is making a run at 1.6910. We are neutral here for now.”