In recent days there has been a sudden collapse on Pound pairs. It is also visible on GBP/CAD daily chart as a bearish engulfing formation, after which the declines have continued. Interestingly, in the downward trend that existed since the beginning of last year, the range of the current correction has been repeated several times. This is an argument in favor for a return to decline.
If today’s and Friday’s gains are not to strong, the weekly candle will close as a bearish pin bar, indicating a possible lower low in a downward trend. As you can see in the W1 chart, similar candles often predicted upcoming declines.
