GBP CAD Short Entry

Nov 18, 2021

GBP cad has gained a lot of momentum this week following the increase of interest rates in the UK. The pair has gained 1.56% this week alone but as of today, it has witnessed some sell-off. The RSI levels on the 4hr chart are currently in very oversold levels,91, indicating that the continuation of the sell-off is likely. Another indication that GBP/CAD will drop is that the price wasn’t able to pass the 1.705 level which was the resistance it had to break to keep the momentum going forward. The targets for this short trade are at the 0.5 Fibonacci retreatment level of 1.6947. Following this, the next profit target is at 1.688. The stop loss area is tight, just above the recent high increase direction changes; at the 1.7052 level.