GBP/CAD bearish zigzag within a steady channel

July 7, 2016

By Admiral Markets

The GBP/CAD is making a zig zag trend pattern within an equidistant channel. The channel is steady and if follows the trend perfectly. Currently the pair is retracing from POC 1.6854-70 and if we see a close below 1.6815 the pair could continue down towards 1.6768 DPP. Break below DPP will target triple bottom at 1.6691. So it is very clear that if we see a breakout of 1.6691 the way towards 1.6500 will be open. Fakeout that happened prior to retracement signals a possible strong stop grab below 1.6691.

However if we see the pair above 1.6880, then we should be prepared for a deeper retracement towards 1.6950-80 (88.6, EMA89, H5) and expect fresh sellers there.

Follow @TarantulaFX on twitter for latest market updates

Get our Weekly Commitment of Traders Report: - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.

Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter

Article by Admiral Markets

Source: GBP/CAD bearish zigzag within a steady channel

Admiral Markets is a leading online provider, offering trading with Forex and CFDs on stocks, indices, precious metals and energy.