GBP/CAD Bearish Breakout Expected from Range
Updated
GBP/CAD is expected to break out to the downside after a period of ranging market conditions. Despite multiple market data releases, the pair remained unaffected and has shown a consolidation pattern. I believe the ranging phase is over, and GBP/CAD is now beginning a bearish trend. The first target for this move is 1.76450, with potential for further downside
Currently, the RSI is below the oversold level, indicating a possible correction before the breakout continues. I plan to add some positions at this point, and if the RSI impulsively moves up to the 50 level, I will add more positions.
Best of luck with this bearish trade!
Currently, the RSI is below the oversold level, indicating a possible correction before the breakout continues. I plan to add some positions at this point, and if the RSI impulsively moves up to the 50 level, I will add more positions.
Best of luck with this bearish trade!
Note
- GBP/CAD might face downward pressure if the Canadian dollar benefits from stronger oil prices or positive market sentiment.
- However, should global risk sentiment worsen or if GBP maintains support from positive domestic data, we could see a range-bound movement.
//𝙄𝙣 𝙩𝙝𝙚 𝙨𝙝𝙤𝙧𝙩 𝙩𝙚𝙧𝙢, 𝙩𝙝𝙚 𝙥𝙖𝙞𝙧 𝙢𝙖𝙮 𝙧𝙚𝙢𝙖𝙞𝙣 𝙫𝙤𝙡𝙖𝙩𝙞𝙡𝙚 𝙖𝙨 𝙩𝙧𝙖𝙙𝙚𝙧𝙨 𝙙𝙞𝙜𝙚𝙨𝙩 𝙗𝙤𝙩𝙝 𝙐𝙆 𝙖𝙣𝙙 𝙜𝙡𝙤𝙗𝙖𝙡 𝙚𝙘𝙤𝙣𝙤𝙢𝙞𝙘 𝙙𝙚𝙫𝙚𝙡𝙤𝙥𝙢𝙚𝙣𝙩𝙨.//
Trade closed manually
🚨 𝗚𝗕𝗣𝗖𝗔𝗗 𝗦𝘂𝗿𝗴𝗲𝘀 𝗔𝗺𝗶𝗱𝘀𝘁 𝗗𝗶𝘃𝗲𝗿𝗴𝗶𝗻𝗴 𝗖𝗲𝗻𝘁𝗿𝗮𝗹 𝗕𝗮𝗻𝗸 𝗣𝗼𝗹𝗶𝗰𝗶𝗲𝘀 🚨
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The GBPCAD exchange rate is experiencing significant strength, driven by contrasting economic conditions in the UK and Canada. Here's what's happening:
British Pound Gains Momentum: The Bank of England’s cautious approach to interest rate cuts, paired with sustained inflation pressures in the UK, has fueled confidence in the Pound.
☢️ 𝗕𝗿𝗶𝘁𝗶𝘀𝗵 𝗣𝗼𝘂𝗻𝗱 𝗚𝗮𝗶𝗻𝘀 𝗠𝗼𝗺𝗲𝗻𝘁𝘂𝗺: The Bank of England’s cautious approach to interest rate cuts, paired with sustained inflation pressures in the UK, has fueled confidence in the Pound.
☢️ 𝗖𝗮𝗻𝗮𝗱𝗶𝗮𝗻 𝗗𝗼𝗹𝗹𝗮𝗿 𝗨𝗻𝗱𝗲𝗿 𝗣𝗿𝗲𝘀𝘀𝘂𝗿𝗲: The recent Bank of Canada rate cut, combined with a dip in commodity prices like oil, is weakening the Canadian Dollar, pushing GBPCAD higher.
☢️ 𝗢𝗶𝗹 𝗣𝗿𝗶𝗰𝗲𝘀 𝗗𝗿𝗼𝗽: Canada's heavy reliance on oil exports is exacerbating the situation, as falling oil prices hit the Canadian Dollar hard.
// 👣 The result expect? GBPCAD is rising towards its recent highs and showing continued strength, making it a pair to watch in the coming weeks. //
Note
𝗚𝗕𝗣𝗖𝗔𝗗 𝗖𝗼𝗻𝘀𝗼𝗹𝗶𝗱𝗮𝘁𝗶𝗼𝗻 𝗥𝗲𝗽𝗼𝗿𝘁: 𝗣𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗳𝗼𝗿 𝗕𝘂𝗹𝗹𝗶𝘀𝗵 𝗕𝗿𝗲𝗮𝗸𝗼𝘂𝘁
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Overview: The GBPCAD pair is currently experiencing a period of consolidation on the 4-hour time frame, with price action trapped between a well-established support trendline and a key resistance zone. This consolidation is a critical moment for traders, as it indicates indecision and potential buildup for a breakout in either direction.
𝙎𝙘𝙚𝙣𝙖𝙧𝙞𝙤𝙨 𝙩𝙤 𝙒𝙖𝙩𝙘𝙝:
𝟭.𝗕𝘂𝗹𝗹𝗶𝘀𝗵 𝗕𝗿𝗲𝗮𝗸𝗼𝘂𝘁: A breakout above the key resistance zone would signal strong bullish momentum. If the price closes above this level on higher volume, it could confirm the continuation of the uptrend.
𝟮. 𝗥𝗲𝗷𝗲𝗰𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗣𝘂𝗹𝗹𝗯𝗮𝗰𝗸: If the price is rejected at this resistance, it could lead to a pullback towards the ascending trendline. This would offer another opportunity for bulls to enter at a more favorable price before attempting another push upward. A breakdown below the trendline, however, could shift the sentiment to bearish.
𝙂𝘽𝙋𝘾𝘼𝘿 𝙞𝙨 𝙘𝙪𝙧𝙧𝙚𝙣𝙩𝙡𝙮 𝙞𝙣 𝙖 𝙘𝙤𝙣𝙨𝙤𝙡𝙞𝙙𝙖𝙩𝙞𝙤𝙣 𝙥𝙝𝙖𝙨𝙚, 𝙝𝙤𝙫𝙚𝙧𝙞𝙣𝙜 𝙣𝙚𝙖𝙧 𝙖 𝙘𝙧𝙞𝙩𝙞𝙘𝙖𝙡 𝙧𝙚𝙨𝙞𝙨𝙩𝙖𝙣𝙘𝙚 𝙯𝙤𝙣𝙚. 𝘼 𝙗𝙧𝙚𝙖𝙠𝙤𝙪𝙩 𝙖𝙗𝙤𝙫𝙚 𝙩𝙝𝙞𝙨 𝙡𝙚𝙫𝙚𝙡 𝙬𝙤𝙪𝙡𝙙 𝙨𝙞𝙜𝙣𝙖𝙡 𝙖 𝙘𝙤𝙣𝙩𝙞𝙣𝙪𝙖𝙩𝙞𝙤𝙣 𝙤𝙛 𝙩𝙝𝙚 𝙗𝙪𝙡𝙡𝙞𝙨𝙝 𝙩𝙧𝙚𝙣𝙙, 𝙬𝙝𝙞𝙡𝙚 𝙖 𝙧𝙚𝙟𝙚𝙘𝙩𝙞𝙤𝙣 𝙘𝙤𝙪𝙡𝙙 𝙡𝙚𝙖𝙙 𝙩𝙤 𝙖 𝙩𝙚𝙢𝙥𝙤𝙧𝙖𝙧𝙮 𝙥𝙪𝙡𝙡𝙗𝙖𝙘𝙠.
Trade closed: target reached
closed @ 1.79870
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