As explained in previous posts such on the EURUSD , we look for a certain criteria to be met across the monthly, weekly and daily timeframes that defines our edge before placing trades. Having and being able to define your edge is essential to good trading. As the saying goes, if you can not define your edge, you do not have one. And if you do not have an edge, you will get eaten by someone who does. So if you are in a situation where you are constantly faced with losses, then ask yourself if you can define your edge? If you are struggling, then that is where you need to start.
In regards to the GBPCAD , our edge is only partially met for now on the three timeframes.
Monthly - Price is trading above the high of 2017 but faced with immediate resistance at the round number 1.8000.
Weekly - Price is trading above the 50SMA but is faced with immediate resistance at the 200SMA.
Daily - Price is above the 50SMA and the 200SMA.
The cluster of the weekly 200SMA and the round number 1.8000 is the that we would like to see cleared first, ideally in the shape of a , after which we will look to start placing trades. The current trend in play since bouncing off the daily 200SMA and weekly 50SMA at the start of the year is looking neat and linear is covering ground at a good rate. We would like to see this trend structure continue to the 2015 high at 2.1000 and ideally beyond. This will then offer ample opportunities to compound strategically as the trend develops.
This currency pairing has potential but we must apply patience for now and allow for the above mentioned resistance levels to be confirmed as support but we start allocating our money to any trades.
Any comments or questions, do not hesitate to leave them below.