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A 1201m, while maybe not the most popular choice for the canal these days, is a great rod and is in no way incompatible with fishing there. You would not be undergunned. It would be practically insane to buy a new rod for your first trip there, given what you have. A 706 is a good reel for the canal, although I prefer a bail for the canal. Stradic 8000 with 50lb braid and a 1201m could be a primary canal setup for the rest of your life. If you start to fish it regularly, you might want some other rods, but it isn't necessary.
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