Following the downtrend from 1.9550 to 1.8146, which started at the level of 24.02.15 and ended at 17.04.15, GBP/CAD almost immediately switched to an uptrend. There was some sort of a range lasted for approximately two weeks, but then on the May 05, 2015 pair broke above the high.

Simultaneously GBP/CAD broke above the 38.2% Fibonacci retracement level applied to the 15.02 high and 17.04 low. The quote continued to increase taking out both 50% and 61.8% Fibonacci retracement levels. Currently, the pair is trading near the 61.8% Fib level where the point of the uptrend trendline rejection (not for the first time).

All the facts are pointing to the validity of the uptrend and GBP/CAD could be getting ready for a next wave up. Consider buying GBP/CAD near S1 (1.0914), which is broken 61.8% Fibs resistance. Target should be near the previously established high near R1 (1.9550) as no other major obstacles are seen prior to this rate. The major support level is located near S2 (1.8847) and only clear break below could send the pair back to S3 (1.8698).

Support: 1.9014, 1.8847, 1.8682

Resistance: 1.9550