GBPCAD after retracing 38.2% of the 6th May to 12th august trend has now fallen below the ascending broadening wedge pattern, which makes it vulnerable to selling up to 1.60690. The stop loss for the trade will be above the high of the previous session i.e. at 1.63747.
The daily chart of GBP/CAD is currently in downtrend.
The pair made 50% retracement of its previous move from 1.84000 to 1.70607.
It is currently facing rejections at the 50% retracement level which is indicated by the formation of the bearish pin bar.
As per our analysis,we expect the pair to move towards the price zone of 1.73476.