The CAD has enjoyed considerable strength as the Canadian economy strengthens on the back of its robust trading partner, the United States. As a result, we have seen a huge move lower in the $GBPCAD as sellers enjoy the double whammy of a strong CAD and a weak GBP.
As $GBPCAD moves lower, we see that there is a significant support zone ahead that dates back to 2009. Price found support at the top of the zone at 1.7580 back in September so this is the level to watch. Until we get to the previous low at 1.7580, the $GBPCAD can continue to benefit from the double whammy. However, watch price action in this support zone. Profit-taking is sure to take place given the move lower. However, it remains to be seen if a corrective rally on profit-taking turn into a reversal higher or if the $GBPCAD can break this long-term support zone and continue even lower.