This sterling pair has been trending higher for quite some time and looks ready to test its long-term support zone soon.

Is the uptrend still our friend on this one?

Take a look at these inflection points I’m watching on the daily time frame.

GBP/CAD Daily Forex Chart by TradingView

The U.K. economy has a bunch of top-tier reports lined up this week, including the July claimant count change, CPI, and retail sales figures.

Can these data points continue to support the ongoing climb on GBP/CAD?

Keep in mind that the oil-related Loonie has been putting up a pretty strong fight these days, as resurfacing geopolitical tensions in the Middle East are keeping energy commodity traders on edge about a global supply crunch.

Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the British pound and Canadian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!

GBP/CAD is stalling at the 38.2% Fibonacci retracement of its major upswing seen on the long-term chart, as pound bulls may be looking to take the pair back up to the swing high near the 1.7850 minor psychological mark from here.

A larger correction could still dip to the 50% Fib near S1 (1.7410), the 100 SMA dynamic inflection point and a major psychological mark while the 61.8% level could be the line in the sand for a bullish pullback, as it also coincides with an area of interest.

Don’t forget that the 100 SMA is above the 200 SMA on the daily chart to suggest that upside momentum is present and that these technical indicators could hold as dynamic support on dips.

Just keep an eye out for a break below the 200 SMA that lines up with the trend line that’s been holding since September last year, as this could mark the start of a major reversal!