GBP/CAD Targets Decline as Price Breaks Below Kumo Cloud

GBP/CAD is emerging a double top pattern on the daily chart following an uptrend, signaling a potential trend reversal due to waning bullish momentum. Currently, the price is descending towards the 161.8% Fibonacci level at 1.76824, which coincides with the neckline of the double top pattern and serves as a critical support area. The break of this level is essential for confirming the pattern.
Kumo Cloud Break and Ichimoku Analysis
The price has also broken below the Kumo cloud, indicating a shift to bearish conditions and reduced buying power.
If the price breaks the 161.8% Fibonacci level at 1.76824, subsequent support levels are at 1.75720 (200.0% Fibonacci) and 1.74523 (241.4% Fibonacci). Each of these levels can act as key points to assess the strength of the sellers and serve as strategic entry points for potential trade decisions.
Alternative Scenario
If the price fails to breach the 161.8% Fibonacci support and retraces upwards, it could target the resistance levels at 1.78611 (0.0% Fibonacci) and 1.79715 (61.8% Fibonacci).