-The 1W chart shows a re-test of the support TL on this triangle pattern. This shows that there is a lot of selling pressure and bears are in control.
If you look at price in the circled area, you can see that as price increases, the retracements are strong/deep; showing that if price were to continue higher, the bears will come back and drive price back down again:
-The 1D chart is what you're seeing right now. The exchange rate continues to close above the 61.8% zone on the Fibonacci, which would form the assumption that price is likely to rise to around 1.66920 on the C-D wave of the Harmonic pattern before turning to go south. Numerous tests of the support TL further support an increase in GBPCAD.
Now as, this is a bearish harmonic pattern we would be looking to short as we reach that 1.66920 area. This is inline with my thoughts on the weekly timeframe, (retracements are deep and therefore bulls will be stopped as we find resistance).
Please feel free to comment, tell me your thoughts and what you think!
If you look at price in the circled area, you can see that as price increases, the retracements are strong/deep; showing that if price were to continue higher, the bears will come back and drive price back down again:
-The 1D chart is what you're seeing right now. The exchange rate continues to close above the 61.8% zone on the Fibonacci, which would form the assumption that price is likely to rise to around 1.66920 on the C-D wave of the Harmonic pattern before turning to go south. Numerous tests of the support TL further support an increase in GBPCAD.
Now as, this is a bearish harmonic pattern we would be looking to short as we reach that 1.66920 area. This is inline with my thoughts on the weekly timeframe, (retracements are deep and therefore bulls will be stopped as we find resistance).
Please feel free to comment, tell me your thoughts and what you think!
Trade closed: target reached:
300 pips profit reached!
Comment:
Price reached TL resistance, I'm backing out of the trade, plus price is hovering in overbought areas, this can be shown on the RSI^.
Comment:
Price reached 1.66920 resistance. The completion of the harmonic pattern. The following week would suggest, bearish pressure as the exchange rate has found a weekly major level.
Comment:
(Journal) Good trade overall.