Ask yourself a question- were you short and bearish GBP/CAD at 1.55? Are you now long and bullish at 1.85?
The chances are you are not alone as this has been an extremely popular trade with professional traders over the last few months. Prime broker reports suggest that there are still some very large long positions in the market.
The technical picture certainly does look bullish, with a continuation flag/pennant on the weekly chart with edges at 1.81/1.86.
But, if this pair breaks below 1.81, we will see an extremely sharp sell-off driven by heavy positional liquidation.
I like the idea of being short this pair on any rally towards 1.8500 with a relatively tight stop above recent highs.