It crosses the legacy trendline as the trend rises

• GBP/CAD is rising back above an old trend line and extending its rally.
• The pair is extending its rally into an ascending channel in the medium and long term.

GBP/CAD appears to have bottomed out and is once again rising in a wider rising channel.

The pair was falling in a leg down, however, it probably reversed and started a new uptrend. Given the principle that “the trend is your friend”, the odds favor more advantages to come.

GBP/CAD 4 Hour Chart

Although the pair broke below an important trendline (“Trendline A” on the chart) on October 3rd. It quickly hit rock bottom and has since recovered. It has now also bounced back above the same trendline, reversing the short-term downtrend in the process.

The MACD (Moving Average Convergence Divergence) indicator is now above the zero line, adding new bullish evidence to the chart.

GBP/CAD is further supported by being in medium to long-term bullish cycles.