GBP/CAD 4H Chart: Breakout Could Occur

The British Pound has edged higher by 1.36% against the Canadian Dollar since March 25. The currency pair tested the upper line of a descending channel pattern at 1.7425 during last week’s trading sessions.

The exchange rate is currently trading near the upper border of the channel pattern and could be set for a breakout.

If the breakout occurs, a surge towards the 1.7600 area could be expected during the following trading sessions.

However, if the descending channel pattern holds, bearish traders are likely to target the weekly S2 at 1.7095 this week.