Probable 250 pips LONG trade setup in GBPCAD in coming days..
The GBPCAD made a pullback from strong support situated at 1.69-1.70 level and has not been able to close below 1.70 in Daily chart ,
Next week we have Theresa May resigning and info about most probable next pm of UK , As we know Borris Johnson is leading race as per now and is known Hard Brexiteer which increased pressure on GBP but recently we have seen other politicians also throwing in their nominations which would divide votes and power can shift towards MP's who want Soft Brexit who are more in numbers despite of being from different parties .
GBP is already oversold and sight of good news would make it rally towards highs.. whereas CAD has already seen its good days for now , oil price has fallen but we havnot seen its complete affect on CAD for now as CAD ended up Medium to strong currency last week despite OIl shorts..
Technically GBPCAD is at bottom of range and supported strongly by both horizontal support as well as multi days long Ascending Trendline , which makes a good case for bounce of GBPCAD toward 1.73-1.75 level in coming weeks.
Our strategy is to stay long and buy on dips with 250 pips target untill daily price remains above 1.70 , we will exit all trades if daily candle closes below 1.70 and wait for better price to LONG ,
GBP shorts are not recommended at this stage, as GBP has been very resilient and it will take a very bad news to take GBP further down continuously , where as a small good news would be enough for it to move up.
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Next week we have Theresa May resigning and info about most probable next pm of UK , As we know Borris Johnson is leading race as per now and is known Hard Brexiteer which increased pressure on GBP but recently we have seen other politicians also throwing in their nominations which would divide votes and power can shift towards MP's who want Soft Brexit who are more in numbers despite of being from different parties .
GBP is already oversold and sight of good news would make it rally towards highs.. whereas CAD has already seen its good days for now , oil price has fallen but we havnot seen its complete affect on CAD for now as CAD ended up Medium to strong currency last week despite OIl shorts..
Technically GBPCAD is at bottom of range and supported strongly by both horizontal support as well as multi days long Ascending Trendline , which makes a good case for bounce of GBPCAD toward 1.73-1.75 level in coming weeks.
Our strategy is to stay long and buy on dips with 250 pips target untill daily price remains above 1.70 , we will exit all trades if daily candle closes below 1.70 and wait for better price to LONG ,
GBP shorts are not recommended at this stage, as GBP has been very resilient and it will take a very bad news to take GBP further down continuously , where as a small good news would be enough for it to move up.
Please like , follow us ,let us know what you think about this analysis in comments.