GBP/CAD buy opportunity emerges amidst exhausting bearish trend

By:
on Sep 21, 2023
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  • 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

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GBP/USD trading strategy

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  • 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.

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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

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There 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

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  • 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!
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