GBPCAD Forming Rising Channel

GBPCAD on the daily timeframe has broken down from a rising channel structure, signaling a potential bearish reversal after a strong bullish rally earlier this quarter. The pair is now trading below the 1.8600 resistance zone, which acted as both a structural and psychological level for buyers. This breakdown confirms that sellers are gaining control, and a corrective pullback toward 1.8550–1.8600 could provide an ideal short opportunity before continuation to the downside. Price currently hovers near 1.8410, and a rejection from resistance could accelerate bearish momentum targeting the 1.8200 and possibly 1.8000 levels.

From a fundamental perspective, the Canadian dollar continues to gain strength supported by firm crude oil prices and a stable outlook for the Bank of Canada’s monetary stance. Meanwhile, the British pound is under pressure due to weak UK manufacturing and consumer confidence data, alongside expectations that the Bank of England may maintain rates longer amid slowing growth. These mixed macro signals add to the bearish tone for GBPCAD, as the loonie benefits from commodity stability while the pound struggles with domestic economic concerns.

If sellers maintain dominance below 1.8600, GBPCAD could continue to slide lower in the coming sessions. However, traders should monitor potential pullbacks as liquidity builds around the broken channel support, now acting as resistance. A clear bearish rejection in that zone would validate the continuation move, offering a high-probability setup for further downside profit.