GBP/CAD Fall of the Pound A Bearish Trap Has Been Set
Rising Channel Breakdown
The chart previously exhibited a rising channel with two parallel white trendlines containing the price movement.
The price broke below the channel, signaling a shift in market structure from bullish to bearish.
Bearish Momentum Confirmation After the breakdown, the price retested the lower trendline but failed to reclaim it, confirming resistance.
A strong bearish rejection followed, indicated by the red shaded area showing selling momentum.
Short Entry & Risk-Reward Setup
The short position was entered near 1.78981, slightly below the breakdown point.
The stop-loss is set at 1.80996, positioned above the breakdown level to avoid whipsaws.
The take-profit target is 1.75724, aligning with previous support and a logical demand zone.
Indicators & Confluence
EMA or Trend-Based Indicator. The red shading suggests the price is trending below a dynamic moving average, reinforcing bearish sentiment.
Bearish Candlestick Formation, A series of red candles and a retest failure further confirm selling pressure.
Trade Rationale & Risk-Reward Analysis
Trade Type: Short
Entry: 1.78981
Stop Loss: 1.80996 (~200 pips above entry)
Take Profit: 1.75724 ( 325 pips below entry) Always book Profit every 10%
Risk-Reward Ratio: 1:1.6 , indicating a solid risk-adjusted trade with a favorable reward potential.
This trade capitalizes on the bearish breakdown of the rising channel, with a clear stop-loss placement and a logical take-profit target. If momentum sustains, the price could continue trending lower towards 1.75724 or even extend further.
The chart previously exhibited a rising channel with two parallel white trendlines containing the price movement.
The price broke below the channel, signaling a shift in market structure from bullish to bearish.
Bearish Momentum Confirmation After the breakdown, the price retested the lower trendline but failed to reclaim it, confirming resistance.
A strong bearish rejection followed, indicated by the red shaded area showing selling momentum.
Short Entry & Risk-Reward Setup
The short position was entered near 1.78981, slightly below the breakdown point.
The stop-loss is set at 1.80996, positioned above the breakdown level to avoid whipsaws.
The take-profit target is 1.75724, aligning with previous support and a logical demand zone.
Indicators & Confluence
EMA or Trend-Based Indicator. The red shading suggests the price is trending below a dynamic moving average, reinforcing bearish sentiment.
Bearish Candlestick Formation, A series of red candles and a retest failure further confirm selling pressure.
Trade Rationale & Risk-Reward Analysis
Trade Type: Short
Entry: 1.78981
Stop Loss: 1.80996 (~200 pips above entry)
Take Profit: 1.75724 ( 325 pips below entry) Always book Profit every 10%
Risk-Reward Ratio: 1:1.6 , indicating a solid risk-adjusted trade with a favorable reward potential.
This trade capitalizes on the bearish breakdown of the rising channel, with a clear stop-loss placement and a logical take-profit target. If momentum sustains, the price could continue trending lower towards 1.75724 or even extend further.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.