Resistance: Look for recent highs or key resistance levels where price might struggle to break higher.
Support: Identify strong support levels where the price might find a floor or reverse.
A break below a key support level could trigger further bearish movement, especially if there is a pattern like a break of a trendline, a double top, or a head-and-shoulders formation.
Technical Indicators:
Moving Averages: If the price is below key moving averages (like the 50-period or 200-period MA), it might signal a bearish trend.
RSI: A reading below 30 could indicate oversold conditions, but if RSI is trending lower, it might indicate continued bearish momentum.
MACD: A bearish crossover (where the MACD line crosses below the signal line) could confirm the bearish forecast.
Fundamental Factors:
Interest Rates: The Bank of England (BoE) and the Bank of Canada (BoC) monetary policies can significantly affect GBP/CAD. If there is a divergence in their interest rate outlooks, it can influence the pair’s direction.
Economic Reports: Keep an eye on economic data such as GDP, inflation, and employment reports from the UK and Canada, as these can affect market sentiment.
Support: Identify strong support levels where the price might find a floor or reverse.
A break below a key support level could trigger further bearish movement, especially if there is a pattern like a break of a trendline, a double top, or a head-and-shoulders formation.
Technical Indicators:
Moving Averages: If the price is below key moving averages (like the 50-period or 200-period MA), it might signal a bearish trend.
RSI: A reading below 30 could indicate oversold conditions, but if RSI is trending lower, it might indicate continued bearish momentum.
MACD: A bearish crossover (where the MACD line crosses below the signal line) could confirm the bearish forecast.
Fundamental Factors:
Interest Rates: The Bank of England (BoE) and the Bank of Canada (BoC) monetary policies can significantly affect GBP/CAD. If there is a divergence in their interest rate outlooks, it can influence the pair’s direction.
Economic Reports: Keep an eye on economic data such as GDP, inflation, and employment reports from the UK and Canada, as these can affect market sentiment.
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.