GBPCAD Rally Into Major SupplyBritish Pound / Canadian DollarFOREXCOM:GBPCADJ4mesWickGBPCAD continues to trade within a broader consolidation structure, but recent price action suggests sellers may be regaining control after another failed attempt to break above key resistance. Fundamentally, the Bank of England maintains a higher policy rate than the Bank of Canada, offering a modest yield advantage to the Pound. However, the Canadian Dollar continues to receive strong support from elevated oil prices and ongoing geopolitical tensions, reinforcing demand for commodity-linked currencies. This dynamic creates a challenging environment for GBP bulls, particularly when price reaches established resistance zones. Institutional positioning also favors caution on further upside. Recent COT data indicates that large speculative traders remain hesitant to aggressively add Pound exposure, while commercial participants continue leveraging CAD's commodity strength as a hedge against broader economic uncertainty. This supports the idea that rallies into premium pricing may continue attracting institutional selling pressure. Technical overview: • Weekly structure remains capped beneath major resistance between 1.8650–1.8700 • Daily price action continues to produce failed bullish expansions near range highs • Recent rejection from 1.8631 reinforces the strength of overhead supply • H4 structure has broken key trendline support following a sharp bearish impulse • Fresh supply is positioned between 1.8570–1.8610 • Current price action appears corrective within a broader bearish sequence The recent decline has shifted short-term momentum in favor of sellers, and a retracement into the identified supply zone could offer a high-probability continuation opportunity. Trade Plan: Order Type: Sell Limit Entry: 1.8585 Stop Loss: 1.8675 TP1: 1.8410 TP2: 1.8310 As long as price remains below the major weekly resistance ceiling, the broader bearish outlook remains intact. A rejection from the H4 supply zone could open the door for a deeper move toward the lower boundaries of the macro range.