GBP/CAD Price Prediction: Pierces Below Confirmation Level For Rising Wedge

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 

(Click on image to enlarge)

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. 


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