Hello all!
Here we have the GBPCAD on the daily chart.
As we can see on the RSI (14, close) is the GBPCAD heavily oversold and is it on a strong downtrend. The question rises at which point it will bounce up. The blue and green support lines are broken and it's now on it's way to the black support line. I think it will bounce on the black one, else it will come in an area where no support is for long time. It could fall back then to the yellow support line, which is a scenario but very unlikely if you ask me.
So three scenerio's are possible here:
1. GBPCAD bounces up on the black line and will break the green one on it's way. Wait till the RSI is above 30 to conirm the call. First TP is the red resistance line, second TP is the blue line which is also a resistance line now.
2. GBPCAD bounces up before it hits the black line, this gives also a buy signal when the RSI climbs above 30.
3. GBPCAD breaks through the black line and comes in no man's land. A very deep fall till the yellow line is possible now. An update is needed when this happens.
When this idea receives enough attention I'll update. Please give a LIKE, it will be very appreciated :)
Greetz,
Michael
Here we have the GBPCAD on the daily chart.
As we can see on the RSI (14, close) is the GBPCAD heavily oversold and is it on a strong downtrend. The question rises at which point it will bounce up. The blue and green support lines are broken and it's now on it's way to the black support line. I think it will bounce on the black one, else it will come in an area where no support is for long time. It could fall back then to the yellow support line, which is a scenario but very unlikely if you ask me.
So three scenerio's are possible here:
1. GBPCAD bounces up on the black line and will break the green one on it's way. Wait till the RSI is above 30 to conirm the call. First TP is the red resistance line, second TP is the blue line which is also a resistance line now.
2. GBPCAD bounces up before it hits the black line, this gives also a buy signal when the RSI climbs above 30.
3. GBPCAD breaks through the black line and comes in no man's land. A very deep fall till the yellow line is possible now. An update is needed when this happens.
When this idea receives enough attention I'll update. Please give a LIKE, it will be very appreciated :)
Greetz,
Michael