GBP/CAD Rally On Hold

The Sterling made an impressive rally in less than two weeks going from a low of 1.5734 to a high of 1.6618. The rally started on the day when Theresa May, Britain's Prime Minister, made the announcement to withdraw from the single EU market and leave the EU in the "hard way". The speech turned out positive for the Sterling as investors saw a future of stable and growing independent UK economy. 

GBP/CAD was the pair that rallied the most out of all Pound pairs. This rally, however, might have come to a halt as price has now retreated to lower levels. The consolidation comes at a time when fundamentals are yet to reveal the near-term consequences of the policies performed by the UK government. Theresa May will be meeting with President Trump to discuss better UK-US relations in terms of trade, travel and work. These talks might create high volatility in the GBP/USD pair which can spread across various other GBP pairs.

Chart: GBP/CAD H4