The GBPCAD continues to display a bearish outlook, in line with the prevailing downward trend. Recent price action suggests a short tern oversold bounce, potentially setting up for another move lower if resistance holds.
Key Level: 1.8384
This zone, previously a consolidation area, now acts as a significant resistance level.
A failed test and rejection at 1.8384 would likely resume the bearish momentum.
Downside targets include:
1.8113 – Initial support
1.8077 – Intermediate support
1.8036 – Longer-term support level
Bullish Scenario (breakout above 1.8384):
A confirmed breakout and daily close above 1.8384 would invalidate the bearish setup.
In that case, potential upside resistance levels are:
1.8423 – First resistance
1.8460 – Further upside target
Conclusion
GBPCAD remains under bearish pressure, with the 1.8384 level acting as a key inflection point. As long as price remains below this level, the bias favours further downside. Traders should watch for price confirmation around that level to assess the next move.
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