GBP/CAD just threw down a big red candlestick after tagging new 2025 highs!
Is this just a breather or the start of a longer-term downswing?
We’re eyeing a major support zone that could decide whether the bulls step back in or call it a day.
GBP/CAD Daily Forex Chart by TradingView
Sterling slipped across the board after traders started doubting whether Chancellor Reeves still had solid backing from the government, especially after it watered down benefit cuts she had championed to balance the budget.
At the same time, the Canadian dollar drew strength from rising oil prices, growing hopes for Fed rate cuts, and fresh optimism over U.S. trade deals.
Was this the start of a longer-term slide for GBP/CAD, or just a temporary stumble before the bulls regroup?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the British pound and the Canadian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/CAD is closing in on the 1.8400 to 1.8500 zone, a key support area that lines up with the S1 Pivot Point at 1.8377, the 100 SMA, and a trend line that has kept sellers in check since January.
If buyers show up with hesitation wicks and green candlesticks, we could see a bounce from this trend line area and a possible move back toward 1.8800 or even fresh 2025 highs.
But if the bears break through with strong red candles and hold below the trend line, the pair could slide toward the S2 Pivot at 1.8079 or the 1.8000 psychological level. That kind of move might flip the longer-term uptrend on its head!
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
