#GBCAD selling opportunity
Updated
Hello, everyone. I hope you're all having a great start to the week.
Let's analyze the GBPCAD chart and explore a potential selling opportunity in this pair. However, please keep in mind that since we've also posted another idea for EURCAD, it's advisable not to take both of these ideas simultaneously, as it could increase your risk and disrupt your money management.
The price is currently situated at a Daily Clean break area, which serves as a supply zone in the daily timeframe. Additionally, the price has reached the 61.8% Fibonacci retracement level and appears to be forming a rising wedge pattern. Moreover, in less than 10 minutes, a bearish hammer candlestick formation will likely occur in the 4-hour timeframe, further supporting the potential for this trading zone.
It's essential to note that in the forex market, there are times when the price presents clear patterns. However, it often initially moves against the pattern to trigger traders who trade in the direction of those patterns and then reverses in the direction of the pattern. I believe that the bullish breakout from the wedge pattern is a false breakout, and the price will eventually return inside the pattern.
For entering a position, you can either trade based on the 4-hour bearish hammer candlestick formation or wait for the price to return inside the wedge pattern. In any case, your stop-loss should be placed above the high formed in this candle.
Wishing you all the best.
Let's analyze the GBPCAD chart and explore a potential selling opportunity in this pair. However, please keep in mind that since we've also posted another idea for EURCAD, it's advisable not to take both of these ideas simultaneously, as it could increase your risk and disrupt your money management.
The price is currently situated at a Daily Clean break area, which serves as a supply zone in the daily timeframe. Additionally, the price has reached the 61.8% Fibonacci retracement level and appears to be forming a rising wedge pattern. Moreover, in less than 10 minutes, a bearish hammer candlestick formation will likely occur in the 4-hour timeframe, further supporting the potential for this trading zone.
It's essential to note that in the forex market, there are times when the price presents clear patterns. However, it often initially moves against the pattern to trigger traders who trade in the direction of those patterns and then reverses in the direction of the pattern. I believe that the bullish breakout from the wedge pattern is a false breakout, and the price will eventually return inside the pattern.
For entering a position, you can either trade based on the 4-hour bearish hammer candlestick formation or wait for the price to return inside the wedge pattern. In any case, your stop-loss should be placed above the high formed in this candle.
Wishing you all the best.
Note
we are still waiting for proper price confirmation to open our position.Note
seems like after two or three fail attempt from price to break the high, price is finally returning to our wedge pattern which suggest that bullish breakout of pattern was fake and potentially price can retrace all the way to lower wedge pattern barrier and from there we should see what price is going to do.
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