GBP/CAD needs to extend above 1.71 to strengthen – Scotiabank

GBP/CAD is struggling to extend gains through the 1.71 area that has served as a lid for this market since October. Economists at Scotiabank note that a break above here is crucial to see another leg higher.

GBP/CAD price action retains a positive undertone

“Short, medium and long-term oscillators are mixed which rather suggests the flattish range trade will extend a little longer.”

“We do note that there is a bit of an inverse Head & Shoulders ‘whiff’ to price action since October, which fits with our broader view that the pound’s bounce from the 1.67/1.68 zone could well extend. But that 1.71 resistance zone needs to be taken out sooner rather than later if the GBP is to progress.”