GBPCAD-bullish- Posts new 7-year highs within a rising wedge

GBPCAD surged to a new 7-year high at 2.0629 Wednesday (August 5, 2015), retracing over 61.8% of the 2.3564/1.4829 (2007/2010) fall. The overbought technical indicators caution for pullbacks. As shown on the 240minute chart, a 4-week rising wedge is forming. The 2.0319/2.0389 area near rising wedge support should hold dips. Further strength above 2.0629 would open 2.0728 (November 3, 2008 high). However, a break below the wedge lower bounds would extend the correction towards the key 2.0120 range area near the 3-month rising trendline (from May 5, 2015 low).

Outlook:
Short term: bullish
Long term: bullish