17 Feb 2016

GBP/CAD TESTING MAJOR LEVELS

GBP/CAD DAILY

The rate is currently testing the 4-month lows at 1.9780. Technically it has broken the large symmetrical triangle/tripple top support, but a break below 1.9770 is needed to confirm the break otherwise it may turn out to be a larger bullish flag pattern.

As all of the CAD pairs the next move will depend on what's going on with the Oil price as it may be also working towards a major reversal.

Another important thing that isn't encouraging for the the downside is the 2-and-a-half-year rising trendline support coming in at around 1.9500-1.9600 area which is also the former major resistance level/ new support so the propper strategy may be a smaller short entry on the Daily close below 1.9770 and then waiting as the rate breaks the trendline and tests it as the new resistance to enter with a full position.

The triangle breakout targets are 1.9150 and 1.8700, but a break back in the consolidation pattern above 2.0000 would invalidate my immediate bearish outlook.



For deeper knowledge on how the Forex market works and how to trade it simple check out our Forex Online School

If you don't want to miss any new trade ideas and updates, subscribe to one of our Trade It Simple Signal Service Plans and receive in your E-mail:
  • Entry details
  • Take-profit details
  • Stop-loss details
  • Trade updates
 SUBSCRIBE HERE!

0 comments :

Post a Comment