Carney made a great trade in August and anyone else ditching Canada for the old country did as well.
GBP/CAD was one of the best-performing FX pairs in the month, gaining 4.25%, or a hefty 705 pips. In the space of four weeks, the pair broke the 2013 highs, the 2012 highs, the 2011 highs and the mid-2010 highs — all areas that could have offered some significant resistance.
GBPCAD monthly chart
The pair peaked on Aug 23 at 1.6515 but reversed on the same day and slipped back to 1.6174 three days later. A close above 1.65 would have been a positive sign but this pair is beginning to look awfully good.
After fall steadily for 14 years, GBP/CAD carved out a range since 2010. It’s now in early stages of breaking the topside of the range and even a modest bounce toward the 2007 high of 2.35 leaves plenty of room on the upside.