Pound to Canadian Dollar Starting Mini Bullish Trend Higher 

The steep fall in oil prices and sterling's releif rally following Teresa May's victory have led to a possible reversal in GBP/CAD's down-trend.   

The pound to Canadian dollar has started a new mini-uptrend higher. 

This has come broadly as a result of the CAD weakening due to falling oil prices and the pound rising after Teresa May won the race to be the next leader of the conservative party. 
The pair has started going up after reversing its previous down-trend which reached the 1.6682 lows on the seventh of July. 
It has since posted five up-days in a row.
Pic Day
On the four-hour chart the pair has reversed the progression of peaks and troughs down and is now making peaks and troughs up instead.  This indicates a possible change in trend albeit at a very early stage. 
Pic 4hr
This mini-up-trend will probably extend higher with a break above 1.7200 confirming a continuation to 1.7300. 
The MACD has crossed above its signal line and is moving higher further supporting the possibility that the trend may be reversing and extending in a bullish direction.
Canadian Data out in the remainder of the week
The rest of the week ahead has the potential to be very volatile. 
Not only are oil prices falling but both currencies have central bank meetings. 
The Bank of Canada (BOC) meets on Wednesday for its interest rate decision. 
A day later and the Bank of England (BOE) meets for its interest rate meeting. 
According to FX broker Olympia there is a not very high probability of a rate cut from the BOC, particularly not this early in the year, as they say: 
“The chance of a rate cut in the next 12 months is being priced in at 30%.” 
This does not suggest a cut is imminent. 
For the pound, however, there is a 64% probability of a 25 basis point rate cut at the BOE meeting.  
On the face of it there is a possibility that the pound could fall if there is a rate cut, however, the Canadian dollar may also be susceptible to weakness should the price of oil continue falling. 
The Canadian dollar is highly correlated with the price of oil, showing a 78% average correlation over the last 10 years. 
Crude has already fallen to $45 dollars a barrel from over $50 dollars a barrel, and this has helped stimulate the pair’s recent recovery. 
A cursory look at the charts does not give any clarification of the expected future direction of the commodity.