GBP/CAD just retested the lower band of its daily falling wedge formation with a very corrective behavior inside a smaller descending, hence an upside reversal is very expected. Not breaking below the 1.5230 zone may be a great buy opportunity for a long-term trade towards retesting previous highs.
Our first target for this setup will be the beginning of the smaller descending at around 1.5374. Breaking above this level will push the price towards retesting 1.5445, and 1.5507 in extension (upper band of the daily falling wedge). Finally, if the price breaks above 1.5507, we may see a strong impulsive wave for an upside breakout of the daily falling wedge towards 1.5707 and maybe 1.58000 in the very long run.
Do not forget that in trading price action is king and studying price behavior is always what matters the most. Goodluck!
M.Y.
Our first target for this setup will be the beginning of the smaller descending at around 1.5374. Breaking above this level will push the price towards retesting 1.5445, and 1.5507 in extension (upper band of the daily falling wedge). Finally, if the price breaks above 1.5507, we may see a strong impulsive wave for an upside breakout of the daily falling wedge towards 1.5707 and maybe 1.58000 in the very long run.
Do not forget that in trading price action is king and studying price behavior is always what matters the most. Goodluck!
M.Y.