Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders

Archives

GBP/CAD to Fall After Descending Triangle Formation

November 13, 2017 by Andriy Moraru

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.

Leave a Reply

required
required (will not be published)
optional