The Pound Sterling has been trading in a junior ascending channel pattern against the Canadian Dollar since the beginning of September after the currency pair reversed from its lower boundary at 1.5933 on September 3.
The exchange rate is currently testing a support level formed by the 50-period simple moving average at 1.6494.
If the currency exchange rate breaks the 50-period SMA, bears could drag the price towards the 1.6300 in the short-term.
However, if the support level holds, a surge towards the weekly R1 at 1.6693 could be expected within this week’s trading sessions.
