olly48

GBP/CAD at Resistance

Short
FOREXCOM:GBPCAD   British Pound / Canadian Dollar
Good opportunity to short this now at the resistance, low risk trade. SL above the recent peaks and TP at the support level . MACD also suggests a pull back from here.

Comments

hanging around 1.76350 level , i think it will come back to 1.7400 area again.
what do you think about that ?
Reply
olly48 vijaymalgaya
@vijaymalgaya, Hi, yes I would expect this to retrace to 1.7400 to 1.74750. That falls between 0.382 and 0.5 Fibonacci. This was hugely overbought due to the volatile markets this week, they have calmed now so this will surely have a correction now.
Reply
Still bullish...
Reply
olly48 ze79com
@ze79com, Yes this has clearly broken above now. GBP has been very strong the past few days, I believe this is due to the volatility in the market this week and people have been going to safe haven currencies. This pairing is now very overbought though, RSI is well over 70 so if you are in this trade you can expect a pullback soon or an opportunity to short
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is your idea still working?
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olly48 electronicAnte40786
@electronicAnte40786, Hi, Unfortunately this looks like it has broken resistance so it may continue rising from here. If you entered the trade you can wait for a pull back and close at or close to a breakeven. I would not of entered this trade as the price just continued to rise and did not show any signs of turning back on the MACD and EMS's. You can also check on the 1 hour timeframe using these in future to help time entry to a trade.
Reply
olly48 olly48
@electronicAnte40786, Also there is still resistance around this level (check daily timeframe) so it could pullback lower still
+1 Reply
electronicAnte40786 electronicAnte40786
thank u so much
Reply
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