GBP/CAD Price Analysis: Market structure opens potential for shorting
|- GBP/CAD has some room to run to the upside before meeting resistance.
- Bears waiting to pounce on opportunities to familiar support.
The price of GBP/CAD has been caught in a long term consolidation between support and resistance n the monthly charts for many months.
However, this still offers opportunity on the lower time frames and the current trajectory could be coming to an end soon.
Bulls are on the path towards a weekly resistance which could lead to near term shorting opportunities on the 4HR time frame.
The following is a top-down analysis of the pair that derives at the possibility of a swing trade to the downside.
Monthly chart
The monthly chart shows that the price has been well supported on the multiple tests.
However, the supply remains strong so there is still scope for further downside tests and the wick should be filled in on the latest weekly stick.
The weekly chart shows that there is an upside target to the prior support structure which is expected to turn to resistance.
Daily chart
From this point, there is still room to the upside from where we expect there to be a rejection and an opportunity to monitor for a downside trajectory for the 4HR time frame.
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