The GBP/CAD currency pair is showing signs of a bearish continuation after reacting to the pivot level at 1.7988, which has been identified as an overlap resistance. The price is expected to drop further toward the first support level at 1.7804, which serves as a key pullback support zone. The first resistance level is marked at 1.8056, acting as a ceiling for any potential bullish movement.
This setup aligns with technical Fibonacci analysis, suggesting a possible 50% retracement from the resistance zone. Traders should carefully monitor price action around these key levels to evaluate the likelihood of further bearish momentum or potential reversals.
It's essential to approach this trade with caution, employing sound risk management strategies. Trading Forex and CFDs carries a high level of risk and may not be suitable for all investors. Only trade with money you can afford to lose, and always seek independent advice if needed.
This analysis is intended for educational purposes, providing general market commentary without constituting personalized investment advice. Remember, past performance is not indicative of future results, and market conditions can change unexpectedly. Keep an eye on GBP/CAD as it tests these critical levels and prepare to adapt your strategy based on new developments.
