GBP/CAD Price Prediction: Rising Wedge pattern could be vulnerable to break down

Source Fxstreet
  • GBP/CAD might be completing a bearish Rising Wedge price pattern.
  • If so, there is an increased risk of a downside break. 

GBP/CAD recovers to trade back inside its Rising Wedge pattern after temporarily falling below the lower boundary line. It remains vulnerable to a downside break. 

Rising Wedges are bearish patterns. Although there is no way of confirming GBP/CAD has formed one for sure it looks likely that it has.

GBP/CAD 4-hour Chart 

A break below the lower boundary line and then below 1.7871 (November 6 low) would probably confirm a decisive breakdown and lead to a decline to 1.7719, the October 3 swing low. 

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 could be a sign of bullish exhaustion and an early warning of impending reversal. 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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