GBPCAD - Short potential

26 Mar 2023

The last few weeks have seen the pair gain some significant momentum coming into some key fundamental events. Now that most of the significant data has been released until May we are likely to see traders and investors take some profit off the table and allow price to settle a bit. Last time the pair saw this break in data we had a two week sell off into 1.6180. holding a short bias here we will be looking to short the pair on closes below 1.6750 although a breakthrough and retest of the level would be the preferred entry model. For those looking for the higher probability entry waiting for 1.6700 to be taken out would make the most sense and would stack probability in our favour. Once 1.6700 is breached we are likely to see a sharp sell off into 1.6600 and this area will either play host to our target or our next entry depending on momentum leading up to the test of this area. If this were to turn into a swing trade following a break below 1.6600 then a return into the significant level at 1.6180 would be the most logical scenario and would open potential entries at 1.6520, 1.6400 and 1.6250 on route to the eventual target at 1.6180.