GBPCAD - Bearish Momentum Expected from Resistance Zone
GBPCAD is currently testing a significant resistance zone. This level has previously acted as resistance, leading to a bearish reversal. The recent upward momentum into this zone suggests a potential for sellers to regain control and push prices lower.A bearish confirmation, such as a rejection candle, bearish engulfing pattern, or signs of fading bullish momentum, would indicate an increased likelihood of a move downward. If this scenario unfolds, the price could head toward the 1.78220 level.
This setup aligns with a potential short-term correction after an impulsive move. Traders should wait for confirmation of selling pressure before considering short positions.
This is not financial advice but rather how I approach support/resistance zones. Always wait for confirmation, like a rejection candle or volume spike before jumping in. And let me know what you think of this setup in the comments!
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