GBP/CAD Price Prediction: Vulnerable to more downside as bears hunt targets
- GBP/CAD is pulling back in a short-term downtrend, however, it is likely to resume its bearish bias.
- The pair recently broke down out of a bearish Rising Wedge but downside targets have yet to be hit.
GBP/CAD has broken out of a bearish Rising Wedge pattern and started to decline. Although it is pulling back at the moment, it is expected to eventually continue falling towards the pattern’s downside targets.
GBP/CAD Daily Chart
A break below the 1.7700 November 14 low would probably confirm further weakness to the next target at 1.7518, the 61.8% extrapolation of the width of the Rising Wedge at its widest part extrapolated lower. This is the usual technical method for forecasting breakouts.
Prior to the breakdown, GBP/CAD broke temporarily above the upper guardrail of the Rising Wedge pattern on several occasions (blue circles on chart) on September 20 and November 1. This is a sign of bullish exhaustion and an early warning of impending reversal.
Author
Joaquin Monfort
FXStreet
Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.
