GBP/CAD buy opportunity emerges amidst exhausting bearish trend
- GBP/CAD will possibly make correction and will retrace to the 1.69389 resistance level
- I’ll be watching this for at least 1-2 weeks with a potential upside of 7.23%
- I would recommend managing this trade effectively as the market will remain volatile
GBP/USD trading strategy
Copy link to section- Buy/sell asset: Buy GBP/CAD
- Entry price: 1.65409
- Stop loss: 1.64672
- Leverage: 3x
- Take profit 1: 1.66500
- Take profit 2: 1.67700
- Take profit 3: 1.69398
- Timeframe: 1-3 weeks
- Maximum profit: 7.23%
- Maximum loss: 1.35%
GBP/CAD chart and technical analysis
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The strong bearish trend seems to be exhausting as the price is reaching a major daily support level of 1.65403. Candles on smaller time frames are showing rejection as they approach the support level.
This could be a good reversal trade though the price may remain bearish in the longer term. Price has dropped almost 600 Pips without making any considerable correction.
I am expecting the price will drop slightly further to 1.65403 and will test the major demand area before the projected correction to the 1.69421 resistance level.
GBP/CAD fundamental analysis
Copy link to sectionThere is no high-impact news due on the British Pound and Canadian Dollar. However, overall market will remain volatile due to the high-impact news on other currencies.
British pound to Canadian dollar trade idea takeaways
Copy link to section- GBP/CAD will possibly make correction and will retest the 1.69398 resistance level before continuing the bearish trend.
- I would recommend managing this trade effectively as the market will potentially remain volatile through the rest of the week.
- Entry and stoploss prices are placed at safe levels to ensure maximum winning probability.
- Good luck!
