From TradingView · · 1m 30s
GBPCAD is coiling inside a bull flag
A long-running uptrend just bounced off its floor again, and the next daily close decides the move.
In brief
A long-running uptrend just bounced off its floor again, and the next daily close decides the move. Wait for a daily close above the flag's upper boundary before going long, or wait for 1.8320 to buy lower. Don't front-run the breakout. Originally reported by TradingView.
The trend is still up
GBPCAD has been climbing inside a long-term ascending channel. Buyers showed up at the lower boundary in March, May and September, stacking higher lows each time.
“Price has been moving inside a strong, long-term ascending channel.”
A pause, not a reversal
Price is now grinding sideways-to-lower inside a small descending channel. That shape sitting inside an uptrend is a bull flag, which usually means consolidation before continuation.
“price is consolidating inside a temporary descending channel (bull flag)”
1.8650 held again
The pair bounced cleanly off the lower boundary around 1.8650. Buyers are still defending that support, which keeps the bullish structure intact.
“Price recently bounced perfectly off the lower boundary near 1.8650”
The trigger is a daily close
The setup only activates on a daily candle closing above the upper boundary of the descending correction. An intraday poke through the line does not count.
“A daily candle close above the upper boundary of the descending correction.”
Target zone 1.9200 to 1.9300
If the breakout confirms, the projected move runs into the 1.9200 to 1.9300 band. That is where the plan says to start taking profit off the table.
“Target: 1.9200, 1.9300”
Or wait for 1.8320
The second path is patience. If price drops instead, the 1.8320 support floor offers a lower demand entry. Either way, size the position so a failed setup is survivable.
“Always manage your risk properly!”
What matters most
Wait for a daily close above the flag's upper boundary before going long, or wait for 1.8320 to buy lower. Don't front-run the breakout.
