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20 Nov 2024
GBP/CAD Price Prediction: Pierces below confirmation level for Rising Wedge
- GBP/CAD has broken below the confirmation level for the breakout from its Rising Wedge pattern.
- It is likely to continue lower until it fulfills the minimum price objective for the pattern.
GBP/CAD is extending its decline after breaking out of a bearish Rising Wedge pattern.
The pair has already pierced below the October 3 lows (dashed red line), one of the confirmation levels for the pattern and is therefore likely to continue lower.
GBP/CAD Daily Chart
The next target to the downside is at 1.7518, the 61.8% extrapolation of the width of the Rising Wedge at its widest part extrapolated lower. This is the usual technical method for forecasting breakouts.
Prior to the breakdown, 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 is a sign of bullish exhaustion and an early warning of impending reversal.