- GBP/CAD is being rejected at monthly resistance which opens the case for the downside.
- Bears can be enthused by the restest at the countertrendline resistance but 4HR price action is dubious.
GBP/CAD has failed to break out of from the reverse heand and shoulders on the monthly chart and is rejected at a strong level of supply.
The price is making signs for a breakout to the downside on both the weekly and daily chart but there is less conviction on the lower time frame.
The following is s topdown analysis that illustrates the downside bias.
Monthly chart
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The price failed to break the resistance once again which is invakudting the reverse head and shoulders.
Weekly chart
-637365018532948733.png)
The weekly chart shows that there are prospects of a move above the trendline to the prior structure.
Weekly chart 38.2% Fib confluence
-637365018998171762.png)
However, there are many confluence of the the 28.2%, the counter trendline and prior nearterm structure.
Daily chart
-637365019414447630.png)
The daily chart has already offered a number of confirmations that the counter trendline and confluence resistance structure is solid on the restest in what appears to the formation of wave-3.
4HR chart reverse head and shoulders risk
-637365019801500827.png)
The 4-hour chart is, however, seeing the price test back above the 21 moving average.
The risk here is a formation of the reverse head and shoulders and a break to the upside above structure in choppy conditions.
The price action fro here should be monitored for a test of the recent lows. A break and restest could offer prospects of a bearish setup with a lower target.
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