GBP/CAD has formed higher lows and found resistance close to a major psychological level, creating an ascending triangle on its daily chart.
Can it bust through the top soon?
Take a look at these potential targets I’m watching on the long-term time frame!
GBP/CAD Daily Forex Chart by TradingView
Stronger U.K. fundamentals, as supported by an upside surprise in the latest jobs report and GDP data, propelled this sterling pair to the very top of its ascending triangle near the 1.8800 handle.
At the same time, falling crude oil prices and dovish BOC expectations have weighed on the Canadian currency while global trade tensions lingered.
Is GBP/CAD ready to make an upside breakout from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the Canadian dollar and the British pound, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Keep your eyes peeled for long green candlesticks closing above the triangle resistance and the 1.8800 mark, as these could mark the start of an uptrend that’s the same height as the chart formation. That’d be roughly a thousand pips!
But if reversal candlesticks still form around the triangle top, GBP/CAD could retreat to nearby support levels at R1 (1.8620) then the pivot point (1.8440) close to the triangle support and 100 SMA dynamic inflection point.
Note that the 100 SMA is above the 200 SMA to suggest that support is more likely to hold than to break, although a strong surge in bearish GBP pressure could still drag the pair down to the downside target at S1 (1.8110) then S2 (1.7930).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
