Just to notice on the S&P 500 daily scale we've got a rare chart pattern : a diamond top.
In the case of a diamond top, the psychology of this pattern is characterized by the double indecision of symmetrical broadening. In fact, broadening highlights the increased
unable to sustain the upward trend in the long term. The forces diminish and shares change hands to go from majority stockholders in the market to less informed stockholders.
After a period of euphoria and the market enter in a period of uncertainty. This is materialized in significant oscillations of the course. The output of this chart pattern has a high probability (80%) to reverse down the last upward trend.
An example of Diamond Top on SPX500 , 2007 pre-crash period :
Indeed, It looks like to a diamond bottom. Unfortunately you are on a very short timeframe. Diamond Top/Bottom works really better on long timeframe : 4H 1D. Moreover you have to be careful with the USOIL price when you trade a canadian pair. Even if this is a diamond bottom it has only 69% of probability to breakout upward. To enter long you need to wait a breakout of the diamond bottom pattern. There is indecision on GBPCAD. This week, I was bearish on this pair. You should wait a bit before entering long or short. Let's see why I would prefer to wait a bit.
You have a bearish engulfing on 1W chart :
It means that the bullish force of the uptrend is getting out of breath. So a lot of long traders may take some profits and the price may go further down. We may start a correction.
In add, on the 1D chart view :
You have a Long Upper Shadow candlestick. This is a bearish signal. We are close to break the uptrend support.
If we break 2.09 level support we may go a lot further down.
On 1H view :
We have indeed a diamond bottom forming but in accordance with the long term view which is very bearish, I'll be extra-cautious about getting long here. Because we have break the uptrend support. So 2.02840 horizontal support need to hold to bounce up. And I don't think it will hold. This may trap a lot of long traders.
I would advise you to not entering long on this trade. GBPCAD looks really bearish to me. So I won't going long on it even if it may go up a bit before going down again and strongly.
I hope I have helped you. And I am sorry for my english. I know it isn't good. But I try to do my best to practice it.