GBP/CAD: buy target - 2.0600
By: Dmitriy Chernovolov
- GBP/CAD reversed from support zone
- Next buy target - 2.0600
GBP/CAD recently reversed up sharply from the combined support area lying between the support level 2.0200 (which also previously reversed the (a)-wave in August), the lower daily Bollinger Band and the 38.2% Fibonacci Correction of the previous sharp upward impulse wave from June. The upward reversal from this support zone created the daily Japanese candlesticks reversal pattern Morning Star Doji (encircled below) – marking the end of the previous minor ABC correction 4.
GBP/CAD is likely to rise further from the current levels inside the active minor impulse wave 5 toward the next buy target at 2.0600. Buy stop-loss can be placed at half the daily ATR below the support level 2.0200.