GBP/CAD 1H Chart: Pennant
- The British Pound is trading against the Canadian Dollar in a pattern similar to pennant that started to form after a six-hour depreciation of the Sterling by 0.69%.
- Traditionally, pennants themselves are made of symmetrical triangles, but this time it made of an ascending triangle.
- From the triangle’ point of view, the breakout should occur in the northern direction.
- But given that it represents only a part of larger, dominant formation, the currency rate is expected to continue to move to the south.
- The length of the fall most likely is going to fluctuate between 100-120 basis points.
- A summary of various technical indicators, generally, support this scenario by sending strong sell signals.
- However, this scenario will break down if the currency rate fails to bypass the weekly S2 at 1.6340.
