The GBP/CAD quotations last week set a new low at 1.7325, followed by an upward correction of the last downturn impulse. As can be seen in the daily chart below, the exchange rate as part of the correction abolished 61.8% of the previous traffic.
After testing the abolition level (1.7611) on Thursday, quotations formed a bearish outside bar indicating the return of the supply side. The drops continued on Friday.
Considering the above, there is a chance to end the correction and continue the decreases. The first objective in this scenario may be the level of expansion of 61.8% of ABC traffic, which falls around last week’s minimum.
Alternatively, the bearish attitude towards GBPCAD will be questioned after closing the quotations on the daily chart above the peak from last week/abolition of 61.8% of AB traffic.