- GBP/CAD rises back above a former trend line and extends its rally.
- The pair extends its rally within a medium and long-term ascending channel.
GBP/CAD appears to have bottomed and is rising again within a broader ascending channel.
The pair was falling into a bearish leg, however, it has probably reversed and started a new uptrend. Given the principle that “the trend is your friend”, the odds favor more upside to come.
GBP/CAD 4-hour chart
Although the pair broke below a major trend line (“Trend Line A” on the chart) on October 3rd. He quickly hit rock bottom and has since recovered. It has now also broken above the same trend line again, reversing the short-term downtrend in the process.
The Moving Average Convergence/Divergence (MACD) indicator is now above the zero line, adding more bullish evidence to the chart.
GBP/CAD is further supported by the fact that it is in medium to long-term upward cycles.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
