GBP/CAD is making enough lower highs to make pound buyers think twice about extending its uptrend.
Think we’ll see a breakout or a reversal anytime soon?
The 4-hour chart may offer some clues:
If you’ve been watching GBP or CAD pairs, then you’ll know that GBP/CAD has been trading in an uptrend since early June after finding support from the 1.6650 area.
The pair is currently trading closer to 1.7150, which is still above a trend line and 200 SMA support in the 4-hour time frame.
But note that GBP/CAD has been registering lower highs since late August.
In fact, GBP/CAD is locked inside a symmetrical triangle pattern that may see a breakout in either direction.
Which way will GBP/CAD go?
A clear upside breakout above the 1.7200 psychological handle could take the pair up to the 1.7300 previous high if not the 1.7340 previous high.
But if GBP/CAD starts trading below its trend line support, then you gotta be ready for a possible trip to the 1.7000 area of interest.
Whichever bias you choose to trade, make sure to use a trading plan and remember your risk management so you can trade for another day!
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