GBPCAD SHORT

8 thg 8, 2023

Take Profit 1 - 1.7072
Take Profit 2 - 1.7022
Take Profit 3 - 1.6972
Stop loss - 1.7252

The GBPCAD pair has been in a bearish trend for the past few weeks, and it is currently trading near the bottom of its range. The current spot rate is 1.7152, and a sell entry point of 1.7152 is just above the recent low of 1.7132.

There are a few reasons why GBPCAD could continue to fall in the near term. First, the GBP is generally seen as a safe haven currency, and it has been weakening against the CAD in recent weeks as concerns about the global economy have grown. Second, the Bank of England is expected to raise interest rates more slowly than the Bank of Canada, which could put downward pressure on the GBP against the CAD. Finally, the UK economy is expected to grow more slowly than the Canadian economy in the near term. This is due to a number of factors, including the impact of the war in Ukraine on the UK's economy.

Technical analysis:

From a technical perspective, the GBPCAD pair is trading below its 200-day moving average, which is a bearish signal. The pair is also forming a bearish descending triangle pattern, which is a continuation pattern that typically leads to a breakout to the downside.

Fundamental analysis:

The UK economy is expected to grow more slowly than the Canadian economy in the near term. This is due to a number of factors, including the impact of the war in Ukraine on the UK's economy. However, the Bank of England is expected to raise interest rates more slowly than the Bank of Canada, which could put downward pressure on the GBP against the CAD.

Risks:

There are a few risks to consider before entering a trade on GBPCAD. First, the global economy is facing some headwinds, such as the war in Ukraine. These headwinds could weigh on risk appetite and lead to a decline in the GBPCAD pair. Second, the Bank of Canada is expected to continue to pursue an ultra-loose monetary policy, which could put downward pressure on the CAD. Finally, the UK economy is facing some headwinds, such as the war in Ukraine and the ongoing trade tensions with China. These headwinds could weigh on the GBP and lead to a decline in the GBPCAD pair.

Overall:

I think GBPCAD is a good pair to trade for those who are looking for a short-term bearish trend. However, it is important to remember that the forex market is volatile, and there is always the risk of a reversal. You should always do your own research before entering any trades.

Here are some additional factors that you may want to consider before entering a trade on GBPCAD:

The economic outlook for the UK and Canada.
The level of volatility in the forex market.
The price of oil and other commodities.