GBP/CAD hits 8-week high; looking neutral in the medium-term.
GBP/CAD has been on the rise since effectively late May, after touching a five-month low of 1.7051 on May 30. Earlier on Friday, the pair reached an eight-week peak of 1.7686.
The positively-aligned Tenkan- and Kijun-sen lines are confirming the view for the existence of a bullish bias in the short-term. In addition, the fact that the two lines are steeply heading higher suggests that bullish movement in the near-term has still room to run.
The area around the current level of the 100-day moving average at 1.7674 seems to be acting as an immediate barrier to price advances; note that the 100-day MA was momentarily violated earlier in the day. An upside break of this region would turn the attention to the area around the 50% Fibonacci retracement level of the March 19 to May 30 down-leg at 1.7732, and then to the Ichimoku cloud top at 1.7818.
On the downside, support could come around the 38.2% Fibonacci mark at 1.7571, and further below from the zone around the current level of the Kijun-sen at 1.7496, which also encapsulates the Ichimoku cloud bottom at 1.7514 (and consequently the 1.75 round figure).
In terms of the medium-term picture, the price action over roughly the last three weeks has defied the negative signal given by the bearish cross recorded in late May, when the 50-day MA moved below the 100-day one. Instead, the outlook is looking predominantly neutral, with trading activity taking place inside the Ichimoku cloud. If the positive movement continues though, with the price moving above the 100-day MA and subsequently breaking above the cloud, then that would mark a bullish tilt in terms of the medium-term outlook.
Overall, the short-term picture is bullish at the moment, and the medium-term one is looking mostly neutral.
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