A nice setup on GBPCAD
, in which price is stalling at resistance -- i.e. the daily range is getting narrower, volatility
is contracting -- which is coinciding with a 50% Fibonacci retracement
as well as the 50 simple moving average
. With these signs in place, as well as signs of CAD strength across the board, I'm shorting GBPCAD
at 8390. My stop is at 8495, with my target profit at 7990. This means I'm risking 105 to gain 400, which comes out to a reward/risk of about 3.81.