GBPCAD Short PositionSeasonality Analysis: Historical data suggests a bearish seasonality for GBPCAD during this period, indicating a higher likelihood of downward movement in the pair.
RSI Bearish Divergence: The Relative Strength Index (RSI) is showing a bearish divergence. This occurs when the price is making higher highs, but the RSI is making lower highs, signaling that the upward momentum is weakening and a potential reversal is likely.
Trendline Break: The price is approaching a key trendline, and a break below this trendline would indicate a shift from the current uptrend to a downtrend. This break would act as confirmation for entering a short position.
Trade Setup:
Entry: Use a sell stop order to enter the short position once the price breaks below the key trendline. This ensures that you only enter the trade if the bearish trend is confirmed.
Stop-Loss: Place a stop-loss order above the recent swing high or just above the broken trendline to limit potential losses. Adjust the stop-loss level according to your risk tolerance.
