GBP/CAD: Supply pressure remains intact below 1.6545

Overview: – GBPCAD  pair is turning down once again after arriving at 1.7380 levels we have seen reversal candlesticks on the daily time frame. Well this was not a surprise for us as we have seen strong supply pressure from the 1.7380 to 1.6566 level already.

Technical Analysis:-  From technical prospective we can see that a double top pattern has been posted on the daily chart which is providing us bearish signal at an initial stage, however we will get further bearish signal below the 1.6545 level. A daily closing below the mentioned level will open the way towards the 1.6000 and 1.5880 level and furthermore in near term. Overall pair is trading and sustaining below the EMA a line which is providing a bearish signal itself.

We will keep our view bearish on the pair as long as it is trading below the downtrend line and odds are in favor of bears. RSI arrived in the negative territory below 50 level which is favoring the bears and a bearish crossover on the MACD indicator is on the cards which is the recent development on the daily charts.

What Next:-. The pair could face the next support at 1.6580  ahead of 1.6545 . On the upside, resistances align at 1.7000 and 1.7150

Trade idea:-  Based on the chart and study above we can suggest to our readers that sell below 1.6545 for the target of 1.6000 and 1.5850 with a tight stop loss of 1.7000 level.