Even though The Cable tried to rally initially during the course of last week in anticipation of the interest rate hike, the actual hike sent the pair lower. This was due to the fact that BoE is dovish even though interest rate was increased. Now the pair is testing the up trend line we have been following for quite some time.
If the pair breaks below the trendline, it could send send the pair much lower, especially if it can also break 1.30 level.
Trading preference
Wait for the break out of the trendline to the downside to enter short. You can add to the trade if the pair breaks below 1.30. You can also look in to shorting GBPCAD as USDCAD is also expected to go looking for lower prices in the coming week.
