Descending wedge signalling more gains: GBP/CAD technical analysis
GBP/CAD technical analysis indicates that the pair could test towards major medium-term resistance around the 1.7800 level. Gains above the 1.7800 level could provoke a major technical breakout.
The GBP/CAD pair recently received a massive boost to the upside this week after bulls successfully defended critical support, around the 1.7000 level.
GBP/CAD technical analysis shows that buyers could now stage a significant upside rally towards the best levels of 2019.
GBP/CAD medium-term price trend
The British pound has started to gain ground against the Canadian dollar, after the Bank of Canada cut rates by more than expected this week, while oil prices continue to slump below $50.00 per barrel.
Going forward, the GBP/CAD may face fundamental challenges if the Bank of England cuts interest rates. However, the medium-term technicals for the pair are currently very bullish.
GBP/CAD analysis shows that the pair is technically bullish on all fronts, with the price currently trading above all major moving averages on the daily time frame.
Furthermore, a large bullish inverted head-and-shoulders pattern continues to loom on the daily time frame.
Continued upside momentum in the GBP/CAD pair could lead to a test of neckline resistance, around the 1.7800 level.
If price starts to trade above the 1.7800 level the GBP/CAD pair could surge higher, as the upside projection of the pattern is over 1,500 points.
GBP/CAD short-term price trend
GBP/CAD analysis shows that the pair is bullish over the short term while price trades above the 1.7190 support level.
The lower time frames show that a descending wedge pattern breakout has occurred on the lower time frames, which is pointing to more short-term gains.
The size of the pattern implies that the GBP/CAD pair could rally towards the 1.7800 level over the short-term.
Traders should watch out for more short-term gains in the GBP/CAD pair while price trades above the breakout zone, around the 1.7290 level.
GBP/CAD technical summary
GBP/CAD analysis shows that the GBP/CAD pair could start to test towards the 1.7800 level after buyers defended critical support. A bullish ascending wedge pattern breakout has also taken place.