With the breakout of GBPCAD last Friday, the way is now smooth for the pair to attempt touching the long-term trendline which is likely to come around 1.74
Trading suggestion:
. There is a possibility of temporary retracement to suggested support line (1.63415). if so, traders can set orders based on Price Action and expect to reach short-term targets.
Technical analysis:
. GBPCAD is in a range bound and the beginning of uptrend is expected.
.The price is above the 21-Day WEMA which acts as a dynamic support.
....
I HAVE NO BIAS FOR GBP/CAD, BUT BECAUSE ITS ON A UPTREND I WILL BE LOOKING TO BUY INTO THIS CURRENCY ONLY IF THE PRICE ACTION TESTS THE 4HR SUPPORT AND HOLDS
FUNDAMENTALS
GBP
G7 MEETING
CAD
-Fri Aug 30
GDP m/m
Looking at a basket of Sterling pairs on a variety of time-frames.
(You can add this to your own watchlists by copying this code: GBPAUD*GBPCAD*GBPCHF*GBPJPY*GBPNZD*GBPUSD*GBPEUR)
There appears to be some evidence of a bottom shaping on the 4-hour chart.
Expecting a bumpy ride with Sterling, but I believe the Risk/Reward is looking favourable in the short...
We have a potential short position coming up if we see a price rejection from 1.63385, we are going to enter a short position with 2 take profits in place.
Take Profit
Take Profit 1: 1.62359
Take Profit 2: 1.61488
Please use your own risk management for trades whilst using our free setups.
Possible long trade:
- Has recently hit the weekly support and has started to move up
- Head and shoulders patterns on the daily
On the break of the neckline and retest of the support (now resistance), I will take the long trade to the next resistance level.
If the price does not break the neckline and continues to go down, it could mean a possible long entry...
Looking to create the right shoulder on the trend line for an inverted H&S, however the overall plan is to sell after a clear breakout from the key levels
The British Pound vs. the Canadian Dollar. This is one of the most traded pairs in the world. The Canadian Dollar, often referred to as the “Loonie”, is considered to be a commodity currency because of Canada’s heavy energy exports.
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