We're short GBP/CAD following a break of Thursday’s low.
GBP is the weakest major this month and CAD is the second strongest, making GBP/CAD a desirable pair to short.
The daily chart shows price action has been trading within a tight bearish channel since the June high. Furthermore, the channel is accelerating away from a longer-term trendline to show bearish momentum is increasing. Friday produced its smallest range over a four- session period to show compression was underway.
Zooming into the one-hour chart, we can see momentum late on Friday had realigned with the dominant bearish trend and prices gapped lower over the weekend to see a break of Thursday’s low.
GBP is the weakest major this month and CAD is the second strongest, making GBP/CAD a desirable pair to short.
The daily chart shows price action has been trading within a tight bearish channel since the June high. Furthermore, the channel is accelerating away from a longer-term trendline to show bearish momentum is increasing. Friday produced its smallest range over a four- session period to show compression was underway.
Zooming into the one-hour chart, we can see momentum late on Friday had realigned with the dominant bearish trend and prices gapped lower over the weekend to see a break of Thursday’s low.
Trade active:
Stops 1.6823
Tp 1.6403
Tp 1.6403
Trade closed manually:
GBP/CAD has broken down as predicted. However, our short has come up agaisnt long-term support around this year's and month's low.
Short-term, momentum looks bullish so we are banking a profit on the trade.
1.66597
Short-term, momentum looks bullish so we are banking a profit on the trade.
1.66597