GBPCAD broke and closed below a support line of a parallel channel on 4h last week. Yesterday the price had retested the broken channel and was heavily rejected.
Now on hourly, the price is stuck between a channel's support and 1.735 minor structure. This area serves as a local supply zone.
To short wisely I will wait for a bearish violation of yellow support (1H candle close below). Then we can initiate short with 1.73 first goal.
in case if the price returns back within the boundaries of the channel, setup will be invalid
Yesterday I bought GBPCAD because the channel was broken but small support was there from the trendline.
But finally, yesterday's trendline support also broke. Now I think the previous trendline now works as resistance and price till price does not close above trendline I am on sell-side.
Hey guys,
so as you can see, for now, we are waiting for the breakout of the yellow area.
Of course, you can short now, but with breakout probabilities will be higher.