We last posted on the GBPCAD on March 28th when price was being propped up by pivot support.
Price has broken through these levels and is now also trading below the round number 1.8000 and the weekly 200SMA which we would have liked to have seen hold strong as support. Price is now back at our entry from initial break an close above 1.8000 last month.
All is not lost. Support and resistance levels are not hard levels. They are zonal areas. Price moves to around these areas and can often dip below in a pullback in a bull trend before finding support and resuming the move back up.
In terms of support, the daily 50SMA is not too far below which is clustered with the high of 2017.
In addition, if we look at the monthly time frame when the bull trend started at 1.6000 support, September, October and November 2017 were all bullish followed by December being bearish. We then saw January, February and March of this year all being bullish with April so far being bearish.
We can not expect price to move in a straight line. There will always be pullbacks and periods of profit taking.
If this pullback turns into a full on trend reversal, then we have a stop-loss in place with a small risk attached.
Patience needed for now.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!
Sublime Trading
Price has broken through these levels and is now also trading below the round number 1.8000 and the weekly 200SMA which we would have liked to have seen hold strong as support. Price is now back at our entry from initial break an close above 1.8000 last month.
All is not lost. Support and resistance levels are not hard levels. They are zonal areas. Price moves to around these areas and can often dip below in a pullback in a bull trend before finding support and resuming the move back up.
In terms of support, the daily 50SMA is not too far below which is clustered with the high of 2017.
In addition, if we look at the monthly time frame when the bull trend started at 1.6000 support, September, October and November 2017 were all bullish followed by December being bearish. We then saw January, February and March of this year all being bullish with April so far being bearish.
We can not expect price to move in a straight line. There will always be pullbacks and periods of profit taking.
If this pullback turns into a full on trend reversal, then we have a stop-loss in place with a small risk attached.
Patience needed for now.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!
Sublime Trading