GBP/CAD could show a bearish return

23 dic 2021

The pair has been on a downward trend recently, but has been recovering since early December. The bullish trend is very strong on the daily chart, but the pair failed to close above 0.618 Fibb. We also have a bear candle at this level (4h time frame). It could be a sign of the bull's exhaustion. Also, if you look at macd and rsi, you can see a strong bearish divergence. I would wait for the breakout of this thin channel on the 4h time frame for a short position, also some confirmation of the bear candlesticks would be great. But you should keep in mind that this is against the trend, so protect your profit as soon as possible and keep in mind that risk mangement is key.