In our previous report about the GBP/CAD currency pair on April 11 we recommended that you buy the pair after the bullish price action on the H4 chart; immediately the pair formed a Doji candle pattern which was the sign to buy positions. The pair achieved our first and second targets to make more than +200 pips, but since we got our profits the pair has risen more after breaking the triangle and has surged by more than 1000 pips.
Let's take a look at the H4 chart to investigate new opportunities. The pair is trading inside an ascending price channel which is a sign that the bulls still rule the market. We have a key support area at 1.7680-1.7650 at the SMA and the lower limit of the channel, and the Stochastic indicator is making an oversold process now. The two lines crossed to start the upside direction.
The Next Few Days
Based on this analysis on the daily and H4 charts we have to buy now at 1.7725 after we see the last two candles. We saw a bullish pin bar candle at 04:00 and the next candle is a rising one, so we can take our first target at 1.7850 and the second one at 1.7980. However, if the pair breaks the 1.7650 level we can sell it and keep our target at 1.7260.
We have to be careful in the upcoming days regarding hot news like the Official Bank Rate and Manufacturing Production from the UK next Thursday.
