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GBP/CAD Reverses to Form Double Bottom on Weekly

December 10, 2017 (Last updated on May 1, 2018) by

Following a failed descending triangle formation, the pound is now clearly trying to reverse its long-term trend versus the Canadian dollar. The impending switch to an uptrend is signaled by the double bottom pattern on the weekly timeframe.

You can see the bottoms and the neckline marked by the yellow lines on the chart below. The cyan line is my entry level positioned at 10% of the pattern’s height above the neckline. The green line represents my potential take-profit level and is located at 100% of the same distance. I will set my stop-loss to the low of the breakout candle or to the low of the preceding candle in case the bigger part of the former is above the neckline. I will not trade the bearish breakout here unless the currency pair forms a new descending triangle before that. You can click on the image to see a full-size screenshot:

GBP/CAD - Double Bottom Pattern on Weekly Chart as of 2017-12-10

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.

Update 2018-03-14: Finally, my pending buy has been triggered yesterday at 15:24 GMT. The entry level is 1.80527 with stop-loss at 1.76160 and take-profit at 1.98666. It took quite some time to happen, but the breakout looks strong and there are no visible obstacles for the rate before the major resistance level near 1.92000:

GBP/CAD - Double Bottom Pattern on Weekly Chart as of 2018-03-14 - Post-Entry Screenshot

Update 2018-05-01: Despite a very strong breakout, the currency pair failed to maintain its bullish momentum and yesterday it has hit my stop-loss in a month-long retracement:

GBP/CAD - Double Bottom Pattern on Weekly Chart as of 2018-05-01 - Post-Exit Screenshot

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

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