GBPCAD bearish continuation

6月25日

Current Price: 1.73218
Resistance Zone: 1.7330 to 1.7350 (highlighted in red)
Support Levels: 1.7240, 1.7150, 1.7110 (highlighted in red)
Overall Trend: Downtrend on higher timeframes (1-hour, 4-hour, and daily charts)
Trade Setup
Given the bearish trend and the resistance zone, the plan is to enter a short position when the price confirms a rejection from the resistance area (1.7330 - 1.7350).

Entry Criteria
Short Entry: If the price fails to break above 1.7330 and shows signs of reversal (e.g., bearish candlestick pattern or rejection wick) around this level.
Targets
First Target (T1): 1.7240
Second Target (T2): 1.7150
Third Target (T3): 1.7110
Stop Loss
Stop Loss (SL): Above the resistance zone at 1.7360
Risk-Reward Ratio
Ensure the risk-reward ratio is favorable, ideally at least 1:2. For example, if the stop loss is 30 pips, the first target should be at least 60 pips away.
Trade Management
Initial Entry: Enter short around 1.7320 - 1.7330.
Stop Loss: Set at 1.7360 to account for false breakouts.
Take Profit:
Close a portion of the position at the first target (1.7240).
Move stop loss to breakeven once the first target is hit to protect against losses.
Close another portion at the second target (1.7150).
Let the remaining position run to the third target (1.7110) with a trailing stop to maximize profits.