As we can see on the daily, GBPCAD has been having a lot of fun within the marked range. As GBPCAD approached the botom of the range, a fairly simple and easy trade to make is to long towards the bottom, set stop loss slightly below previous wicks outside of the bottom of the range (protect against liquidity grabs) and aim for the top of the range as a take profit. These trades are typically easier to hold and run with, because end of the day it's the simplest type of trade.
Be wary of any consolidation within the middle of the range, we know this happens often, nothing to be afraid of but if you are advanced you can manage your position by selling at the top of a consolidation within the middle of a range and buying the botom of it, however you ask yourself how close is this to scalping and if you should be range trading in the first place.
Fundamentals: GBP has been on a downer lately, this will pick up as the UK begins to leave lockdown restrictions in July and travellers are welcomed back in. Meanwhile the CAD is having the time of its life along with Oil, and we know the Canadian Dollar is a commodity currency and goes hand in hand with Oil so any weakness there could see the CAD drop, resulting in GBPCAD rising.
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Be wary of any consolidation within the middle of the range, we know this happens often, nothing to be afraid of but if you are advanced you can manage your position by selling at the top of a consolidation within the middle of a range and buying the botom of it, however you ask yourself how close is this to scalping and if you should be range trading in the first place.
Fundamentals: GBP has been on a downer lately, this will pick up as the UK begins to leave lockdown restrictions in July and travellers are welcomed back in. Meanwhile the CAD is having the time of its life along with Oil, and we know the Canadian Dollar is a commodity currency and goes hand in hand with Oil so any weakness there could see the CAD drop, resulting in GBPCAD rising.
If you like this idea and analysis please leave a like and give me a follow so I know to continue with the ideas! Feel free to leave a comment if you agree/disagree!