In today’s technical analysis, let’s take a look at the British Pound to Canadian Dollar (GBP/CAD), where the long-term chart shows a clear and healthy uptrend. Buyers remain in control, and the pair continues to respect a series of higher highs and higher lows — a classical characteristic of bullish market structure. What makes this setup particularly interesting is the presence of a large ascending triangle pattern, which often precedes a strong directional breakout.
The pattern is defined by a green horizontal resistance, acting as a ceiling for the price, and a red dynamic uptrend line, which serves as the foundation of the bullish structure. In fact, two uptrend lines can be drawn here — one mid-term and one long-term — both reinforcing the triangle pattern. This alignment of supports strengthens the case for the buyers, as it shows that despite multiple corrections, the market continues to attract demand near dynamic support levels.
From a trading perspective, the ascending triangle typically promotes a breakout to the upside, following the prevailing trend. Therefore, a daily candle close above the green horizontal resistance would be a proper long-term signal to buy, confirming the continuation of the broader uptrend. Such a move would likely attract more momentum traders, potentially pushing GBP/CAD toward new highs.
On the other hand, a break below the red dynamic support line — especially a close beneath both the mid-term and long-term trendlines — would invalidate the bullish structure and signal a possible trend reversal. In that case, sellers could regain control, and the pair might enter a deeper correction phase.
For now, sentiment remains cautiously bullish, with the market coiling in preparation for a potential major breakout. GBP/CAD traders should watch closely — the next few daily candles may determine the direction of the next big move.