GBP/CAD Bears Poised for Action: Head and Shoulders Setup
20 December 2024
British Pound to Canadian Dollar is currently presenting an eye-catching bearish setup that deserves attention. The pair is in the process of forming the right shoulder of a classic head and shoulders pattern. The setup is reinforced by a false breakout above the yellow resistance, which formed the top of the head, signaling a rejection of higher prices. Additionally, the green uptrend line, which had provided support, has already been breached, further solidifying the bearish sentiment.
The final confirmation for a bearish move will be the price breaking below the black neckline, which acts as the last line of defense for the bulls. Should the price close below this neckline, it will generate a sell signal with a highly attractive risk-to-reward ratio. This setup is particularly compelling for traders looking to capitalize on a potential downward move.