GBP/CAD Price Forecast: Nearing upper channel line, bearish divergence

• GBP/CAD is closing in on the upper channel line of a rising channel. 
• It is likely to meet firm resistance at the line and price is diverging bearishly with MACD.

GBP/CAD is trending higher in a rising channel, however, it is close to touching the upper trendline of the channel where it is likely to meet firm resistance and will probably pull back down as a consequence. 

GBP/CAD Daily Chart 

GBP/CAD is showing bearish divergence with the Moving Average Convergence Divergence (MACD) momentum indicator (red dashed lines). This means that although price has risen to a higher high compared to the July 12 high, MACD is actually lower than where it was on July 12. This is a bearish sign and suggests a higher chance of a pull back evolving. 

Taken together with the looming overhead channel line it indicates a risk of price correcting back down within the channel. An initial target for a pull back would be the 50-day Simple Moving Average (SMA) at 1.7733. 

Price itself has not formed a reversal pattern yet. If it does form a candlestick reversal pattern such as a Shooting Star, Bearish Engulfing or Hanging Man, for example, then that will be even more evidence of a correction unfolding.