Is GBP/CAD Poised for a Drop from the 1.855 Level?

Alright, let's dive into GBP/CAD, which has been catching my eye on the weekly chart. The pair has been stuck in a bearish trend, and it's approaching a nice resistance zone around 1.855.

This level isn't just any old resistance — it's a confluence hotspot. We've got the 61.8% Fibonacci retracement lining up with the weekly 50 moving average, creating a solid barrier that has been tested before.

The market is practically screaming at me that this could be a prime spot for a reversal.

Zooming into the daily chart, the setup becomes even clearer. The daily timeframe is confirming what I'm seeing on the weekly — the bears are getting ready to take control.

I think we may see a strong reaction at this resistance zone, but I will not simply enter blind.

As price approaches the 1.855 area I'll be dropping to the 4-hour and 1 hour charts, looking for momentum to slow.

My entry signal will be waiting for MACD crossover to confirm the setup then hitting the trigger.

Here's the plan of attack: I'll be looking for entries around 1.855, with my stop loss safely tucked above the resistance zone around 1.865. My first target is a conservative one at 1.850 — a classic reaction level.

If the market keeps pushing lower, I'll be eyeing 1.845 and then 1.840 or lower for for the bigger move taking some profit as price moves past TP1

If we break and close above 1.863, I'll step aside and reassess.

My approach with the Arcis method is always to look for as many confluences as possible across multiple timeframes — strong signals on the higher timeframes first, then drop to the lower timeframes for the entry using MACD crossover signals as confirmation.

Same applies whether I'm buying or selling.

Drop your thoughts in the comments! 😊