Hello, traders and friends.
Let's analyze the GBPCAD chart, where we believe there might be a compelling selling opportunity.
In the Daily timeframe, you can see that the price has already broken the market structure to the downside. Since the low formed on September 28th, we've been in what we believe is a bullish corrective phase. Consequently, we are now interested in a selling position.
Switching to the 4-hour timeframe, we notice a double top formation that resulted in a lower low, indicating the possibility of bearish continuation, aligning with our higher time frame daily trend. Following this, the price has been moving upwards in a bullish corrective manner, forming a short-term rising channel. Last week, this channel also broke to the downside.
In our view, this recent bullish movement resembles a liquidity-taking activity, and we are keen to observe any rejections from the level marked by the arrow on the chart, with the intent to consider selling.
Additionally, we have identified several resistance factors within a small zone, including the 4-hour and daily timeframe 200EMA, a supply area in the 4-hour timeframe, and the previous high where many traders have placed their stop-loss orders just above it. This presents an opportunity for banks to potentially extract liquidity.
If you have found this analysis helpful, please take a moment to leave a like and a comment or share your idea with me.
Let's analyze the GBPCAD chart, where we believe there might be a compelling selling opportunity.
In the Daily timeframe, you can see that the price has already broken the market structure to the downside. Since the low formed on September 28th, we've been in what we believe is a bullish corrective phase. Consequently, we are now interested in a selling position.
Switching to the 4-hour timeframe, we notice a double top formation that resulted in a lower low, indicating the possibility of bearish continuation, aligning with our higher time frame daily trend. Following this, the price has been moving upwards in a bullish corrective manner, forming a short-term rising channel. Last week, this channel also broke to the downside.
In our view, this recent bullish movement resembles a liquidity-taking activity, and we are keen to observe any rejections from the level marked by the arrow on the chart, with the intent to consider selling.
Additionally, we have identified several resistance factors within a small zone, including the 4-hour and daily timeframe 200EMA, a supply area in the 4-hour timeframe, and the previous high where many traders have placed their stop-loss orders just above it. This presents an opportunity for banks to potentially extract liquidity.
If you have found this analysis helpful, please take a moment to leave a like and a comment or share your idea with me.
Trade active:
4-Hour shooting star candlestick formation gave us selling trigger, lets see what's going to happen.