GBPCAD has broken the support and is now retesting it as a resistance level. From here, if we see a bearish engulfing or pinbar, we will have a good opportunity to short it till the support level. The market has formed lower lows and lower highs in order to form a bearish trend. That being said, it seems like a decent setup for GBPCAD to continue moving down.

The ascending trendline has broken out for sells and has been validated by the price action. On a lower timeframe, once we see witness another trendline breakout for sell.

Since, there was. a steep plummet on the pair, there is no evident retracement in this current scenario.

EMA 50 is still bearish, hovering above the current price action of the market. Market is continuing to move down towards the support level.

RSI is at 38. This level is the bearish level which is heading towards the over sold region. We need to wait for the market to neutralize at the 50 level once it will be retesting the resistance level.

GBPCAD shorts after a hit

Vasl Capital

Nov 09 2022

Stop Loss -0.76%

Holding time 0hr

1.54683

Entry price

1.55853

Stop loss price