• GBPCAD reversed from support area
• Likely to rise to 1.7200

GBPCAD recently reversed up from the extremely strong support area located between the powerful long-term support level 1.6770 (former monthly low from June), support level 1.6825 (former monthly low from September), and the lower daily Bollinger Band. The upward reversal from this support area created the daily reversal pattern Hammer Star standing well outside of the lower daily Bollinger Band – strong buy signal for this currency pair.

Given the strength of the aforementioned support area and the strengthening bearish Canadian dollar sentiment seen across the FX markets today – support area is expected to rise further toward the next resistance level 1.7200 (top of the previous minor correction (b)).