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GBP/CAD to Fall After Descending Triangle Formation

The rate consolidation that took form a descending triangle on the weekly chart of GBP/CAD reflects the broad weakness of the Great Britain pound, which is also seen in the EUR/GBP ascending triangle posted here yesterday. The downtrend in GBP/CAD lasts since 2015 and is forming a strong horizontal support since October last year. Traders taking this setup should be wary of its correlation with the one in EUR/GBP.

The chart pattern is shown with the yellow lines on the image below. The cyan line shows my breakout entry level located at 10% of the triangle’s base width below the lower border. The green line shows my take-profit level and is located at 100% of the same distance. I will set my stop-loss to the breakout candle’s high or to the high of the preceding candle in case the former is trading mostly below the triangle’s border. I will not trade bullish breakouts from this trend continuation formation. You can click on the image to see a larger chart:

GBP/CAD - Descending Triangle Pattern on Weekly Chart as of 2017-11-13

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this GBP/CAD pattern. You can trade it using my free Chart Pattern Helper EA.

If you have any questions or comments regarding this descending triangle on the GBP/CAD chart, please feel free to submit them via the form below.

Posted on Forex blog. Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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