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. More By This Author:GBP/JPY Gains A Lift After UK Consumer Price Data And Fall In Safe-Haven FlowsPound Sterling Price News And Forecast: Hot UK Inflation Challenges BoE Dovish Outlook USD/CAD Trades With Positive Bias Above 1.4000, Looks To Canadian CPI For Fresh Impetus
GBP/CAD Price Prediction: Pierces Below Confirmation Level For Rising Wedge
