Expected Scenarios for the GBP/CAD Pair

The GBP/CAD pair is currently moving within a broad, sideways range on the daily timeframe. It is approaching a strong supply (selling) zone, which marks the upper boundary of this sideways movement.

There are several potential scenarios for the pair’s movement on the daily timeframe, which will be outlined in this analysis.

Expected Scenarios

The first scenario involves a decline from the supply zone located near the 1.8965 level. This is contingent upon observing a reversal signal on lower timeframes—specifically on the four-hour or one-hour charts.

Should a decline occur, the pair is expected to test the 1.8890 and 1.8800 levels, respectively.

The second scenario involves a continuation of the upward trend. This is a longer-term outlook, as the current price action suggests a period of accumulation. For this scenario to materialize, the price must break through the supply zone decisively, with a daily candle closing above it. Ideally, a reversal pattern should appear prior to such a breakout.

In the event of an upward move, the pair is expected to reach the 1.9140 and 1.9240 levels, respectively.

In all cases, please avoid rushing into trades and ensure proper capital management.