The British Pound is enjoying a monster bull run against the Canadian Dollar, as the latter one struggled recently against a basket of currencies. There is a possibility that a wave duplication pattern is forming on the weekly chart of GBPCAD, which can be seen as a target of buyers, and where we might look for sell opportunities. Until then, every minor correction from the current levels could be seen as a buying opportunity.
Looking at the hourly chart, there is a chance of one more wave duplication pattern. So, if the price corrects a few pips lower from the current levels we can enter a buy trade.
Technical Analysis
W1 – Possibility of the pair completing the highlighted wave duplication pattern.
Entry:
H1– We can enter a Buy trade if the price corrects a few pips from the current levels and forms a bullish divergence. Our target would be around the wave duplication area as highlighted in the chart.
Target 1: 1.9950
Target 2: 2.0000
Stop Loss: Below the last low created before entering the trade.
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