The GBP vs CAD has formed a double top
formation as price is sitting on a previous high from 2-24-15. Price has moved away from the previous high and 4 months later has now returned for a re-test. At resistance we should be looking to short the pair unless you are a risky breakout trader.The first rejection of this level back in February, price moved swiftly away from the level and found support nearly 1300+ pips later. We are here again but now price has not shown the enthusiasm to abandon the level as it did previously but with that said there are still signs of rejection at this level. Four days ago price formed a Hang Man which is a possible reversal signal. Since forming the Hang Man price has traded inside the Hang Man and not doing much yet. My overall bias has to be bearish
unless the level is violated with strength. I would be careful entering a short trade here until we violate at least the low of the Hang Man. This is a great area for bull
traps as institutional traders set up the bears and the bulls here. The low of the Hang Man is a known possible entry short and the violation of the resistance zone
would be where the breakout bulls are located. Watch as the market may fall below the Hang Man low and then surge higher violating the resistance level
and getting all the bulls on board before finally dropping and therefore catching two for one as they hit the bears and bulls stop all at once. You can visit me at: http://www.fxatoneglance.com
Until next time have a great week of trading and God bless!