GBP/CAD Bullish Reversal!

GBP/CAD Bullish Reversal!

GBP/CAD trades at 1.7416 at the time of writing and it seems determined to jump way higher after escaping from a down channel pattern. The Pound is strongly bullish in the short term and it could lead the pair higher in the short term.

The pair has printed a major bullish engulfing pattern on the Daily chart on Tuesday signaling that the downside movement is finished and that GBP/USD could give birth to new bullish momentum.

H1 Chart Technical Analysis!

GBP/CAD escaped from the down channel on the H4 chart and now is almost to reach the R1 (1.7410) static resistance. It has retested the Pivot Point (1.7295) registering a false breakdown below it.

The current breakout above the ascending pitchfork’s median line (ML) is seen as a bullish signal. Closing and stabilizing above the median line confirm a further growth ahead. A bullish closure above the R1 (1.7410) is seen as a bullish signal as well.

The R2 (1.7496) and the upper median line (UML) represent immediate upside targets, obstacles.

Conclusion! 

The aggressive breakout above the median line (ML) and above 1.7380 Friday’s high is seen as a bullish signal. The 1.7600 psychological level could be used as an upside target.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Author : Olimpiu Tuns

Olimpiu Tuns

Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms.