The GBP/CAD reached an important area of support. The price bounced of this area once, before finally breaking it to the upside. After a great move up, this zone is now being tested once again and could break to get the price back to 1.80. Yesterdays pinbar supports this idea, as the pressure is pointing towards the downside. Having in mind the structure above the trendline could be a head and shoulders pattern (on H4), the price could even go down to 1.77.
Trade closed: target reached:
The price broke the neckline, made a nice pullback and then went all the way down. Beautifull trade!
It is very likely, that the price wont stop at this point. An extended target is 1.77.