In 2024, the GBP/CAD exchange rate surged by more than 7%, briefly pushing past the crucial 1.800 mark.
The last time GBP/CAD sustained levels above 1.800 was back in 2016, but it subsequently fell. Since then, bulls have attempted to push the price beyond this key threshold twice, once in 2018 and again in 2020 during the pandemic turmoil—both efforts proved unsuccessful.
The latest attempt came in September 2024 when GBP/CAD again surpassed 1.800, but recent bearish momentum, highlighted by yesterday’s large bearish candles (indicated by an arrow), raises concerns that this move above 1.800 may also falter.
Yesterday’s decline was driven by several factors, including:
- Rising oil prices, which typically strengthen the Canadian dollar due to Canada’s position as a major oil exporter;
- A reported slowdown in the UK’s manufacturing sector for September, according to Reuters.
From a technical perspective, GBP/CAD remains within an upward channel (shown in blue) that has been in play since the start of 2024.
Key support areas for the price include:
- The 1.78500 level, which served as resistance until its breakout in September;
- The median line of the rising channel;
- The orange trendline below.
Nonetheless, there’s a chance that these supports may not be enough to keep GBP/CAD consistently above the 1.800 mark, which has historically acted as a major resistance level.
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