GBP/CAD Approaches Major Resistance – Potential Short Opportunit
GBP/CAD is currently testing a resistance and round psychological zone 1.84996 - 1.85000, which has acted as a strong supply area in previous attempts. The pair has repeatedly failed to break above this zone, showing clear signs of bearish rejection via wicks and bearish engulfing candles.
Key Confluences for a Sell Setup:
• Resistance Zone: Price is consolidating below the H1 supply zone, forming multiple rejections.
• 50 EMA (Daily): Price is currently hovering around the 50 EMA, suggesting potential for downward momentum if it holds as resistance.
• Bearish Structure: The pair made a lower high recently, and failure to break the current resistance could confirm a bearish continuation pattern.
• Bearish Wick Rejections: Candles are leaving long upper wicks near the resistance, indicating strong seller presence.
Sell Zones:
• Entry Zone: 1.8500 – 1.85249 (ideal for entries with bearish confirmation)
• Stop Loss Zone: Above 1.85500 (to cover liquidity grabs)
Target Zones:
• TP1: 1.83478 – 1.83240 (first reaction zone near recent structure and EMA support)
• TP2: 1.80926 (previous demand zone and daily structure support)
Bias: Bearish below 1.85249. Watch for confirmation signals like bearish engulfing, pin bars, or break of minor support levels on lower timeframes.
Key Confluences for a Sell Setup:
• Resistance Zone: Price is consolidating below the H1 supply zone, forming multiple rejections.
• 50 EMA (Daily): Price is currently hovering around the 50 EMA, suggesting potential for downward momentum if it holds as resistance.
• Bearish Structure: The pair made a lower high recently, and failure to break the current resistance could confirm a bearish continuation pattern.
• Bearish Wick Rejections: Candles are leaving long upper wicks near the resistance, indicating strong seller presence.
Sell Zones:
• Entry Zone: 1.8500 – 1.85249 (ideal for entries with bearish confirmation)
• Stop Loss Zone: Above 1.85500 (to cover liquidity grabs)
Target Zones:
• TP1: 1.83478 – 1.83240 (first reaction zone near recent structure and EMA support)
• TP2: 1.80926 (previous demand zone and daily structure support)
Bias: Bearish below 1.85249. Watch for confirmation signals like bearish engulfing, pin bars, or break of minor support levels on lower timeframes.
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.