GBP/CAD buy opportunity emerges amidst exhausting bearish trend

September 21, 2023 10:04 PM AEST | By Invezz

GBP/CAD buy opportunity emerges amidst exhausting bearish trend — Image source: Invezz

GBP/USD trading strategy

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

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

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

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!

The post GBP/CAD buy opportunity emerges amidst exhausting bearish trend appeared first on Invezz.

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