GBPCAD: Potential Swing High in Place

Yesterday’s close strongly suggests a swing high has formed and for the bearish trend to resume.

gbpcad

GBPCAD Trading Account?

After the deeper pullback to the outer Bearish Channel I suspect we have seen the swing high. Now it is a case of entering at a favourable price to get short which will require a sizeable retracement within yesterday’s candle.

The session finished with a Dark Cloud cover reversal but the Monthly S1 and within the Bearish Channel . As we closed near the lows after a volatile session it could make the reward / risk ratio unfavourable to enter around current levels, assuming we are trading D1.

gbpcad

GBPCAD Trading Account?

Alternatively we could refer to intraday price action to seek bearish setups below resistance to assume the downside move will continue. I still favour an eventual retracement towards the Daily Pivot but near-term price action appears to be prepping up for another move down.

 

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