The British pound has started to pull back from the 1.7800 level against the Canadian dollar, after staging a major recovery from the 1.6550 level.
GBP/CAD technical analysis shows that the pair could stage a powerful rally if bulls can break above the 1.7800 level.
GBP/CAD medium-term price trend
The British pound ended the month of March in positive territory against the Canadian dollar after the pair staged a major recovery from the 1.6650 area.
The GBP/CAD pair has once again turned technically bullish. However, a bearish pattern is still present on the daily time frame.
GBP/CAD analysis shows that bulls need to move the price above the 1.8400 level to invalidate a bearish head-and-shoulders pattern.
Bulls also need to break above the 1.7800 level to encourage further technical buying over the medium term.
The 1.8070 and 1.8200 levels are the key resistance areas to watch if a breakout above the 1.7800 level takes place.
GBP/CAD short-term price trend
GBP/CAD analysis shows that the pair is bullish over the short term while the price trades above the 1.7215 support level.
The lower time frames show that a bullish inverted head-and-shoulders pattern has formed, with the neckline of the pattern found around the 1.7800 level.
According to the size of the pattern if the price starts to trade above the 1.7800 level the GBP/CAD pair could surge higher, as the upside projection of the pattern is over 1,500 points.
Traders should watch out for a strong short-term directional move to take place once the 1.7215 to 1.7800 price range is broken.
GBP/CAD technical summary
GBP/CAD analysis shows that the GBP/CAD pair could surge if a sustained breakout above the 1.7800 level occurs. A bearish head-and-shoulders pattern needs to be invalidated over the medium term.