The GBPCAD market has recently experienced an uproar in higher prices as a bullish trend lasted over a period of about 5 months. The trend momentum stopped suddenly as the market slammed into a stubborn resistance level around the 1.8555 price area.
The market has bounced of this price level once and is now retesting the area again wedging price between the mean value and the strong resistance. This price squeezing action generally leads to a strong breakout. Due to the multiple bearish signals dropping on the daily chart we are favoring breakouts to the downside as the bearish rejection candles play out.