GBP/CAD: Short for a 3rd harmonic move / bullish 3 drives?
We made a nice harmonic move with .50 retracement and 1.27 extension and we are now almost at another .50 retracement. We could therefor be on our way to complete a bullish 3 drives pattern.
We also have a trendline/channel which could limit the 'up' move towards the .50 retracement of the last move down so I have already entered short from where we hit the trendline to make sure I don't miss it, if it reverses sooner (as per the trades on the chart).
It might still be possible that we complete the full .50 retracement and briefly break through the trendline but I'm hoping this whole harmonic structure is strong enough to keep us on track for the further harmonic move/bullish 3 drives pattern.
My SL is above the .618 retracement of the last down move and above the 2.0300 level, that should be safe enough I hope... Trailing it down asap, before reaching TP1.
I still had sell orders ready at 2.0175 from last week, which I'm leaving open to add to this short. I altered lot size though to keep total risk exceptable.
Targets:
- TP1: re-test of lows
- TP2: 1.27 extension and completion of 3rd harmonic move/bullish 3 drives
- TP3: Possible completion of a bullish bat at lower trendline
POSSIBLE FURTHER OPPORTUNITIES:
- Going long at completion of the bullish 3 drives
- Going long from the bulish bat or trying to catch a bounce from the lower trendline (in case it holds)
That is, if we ever get there of course!
We also have a trendline/channel which could limit the 'up' move towards the .50 retracement of the last move down so I have already entered short from where we hit the trendline to make sure I don't miss it, if it reverses sooner (as per the trades on the chart).
It might still be possible that we complete the full .50 retracement and briefly break through the trendline but I'm hoping this whole harmonic structure is strong enough to keep us on track for the further harmonic move/bullish 3 drives pattern.
My SL is above the .618 retracement of the last down move and above the 2.0300 level, that should be safe enough I hope... Trailing it down asap, before reaching TP1.
I still had sell orders ready at 2.0175 from last week, which I'm leaving open to add to this short. I altered lot size though to keep total risk exceptable.
Targets:
- TP1: re-test of lows
- TP2: 1.27 extension and completion of 3rd harmonic move/bullish 3 drives
- TP3: Possible completion of a bullish bat at lower trendline
POSSIBLE FURTHER OPPORTUNITIES:
- Going long at completion of the bullish 3 drives
- Going long from the bulish bat or trying to catch a bounce from the lower trendline (in case it holds)
That is, if we ever get there of course!
Trade closed: stop reached:
Took partial profits at 2.0020, rest stopped out at BE.
