GBPCAD - Short Opportunity off of Price Action

FX:GBPCAD   British Pound / Canadian Dollar
Greetings Fellow Traders,

I posted a few days ago about this potential set up and expectations for it. We've managed to close below the trend line by a pretty significant margin on the daily candle. This is the red flag of trading for a trade opportunity. We need to wait for the market to come back and retest the support that was broken as a new found resistance.

Since our failed attempt at breaking 2.0330 it is interesting to note that we may be in the midst of yet another strong resistance level to keep an eye on. The lower support of a Descending Triangle that was used to trade the initial and subsequent breakouts to 2.0330 is now parallel with the most recent effort to break that level putting this pair into a parallel channel .

Trade Opportunity:
Sell Limit 2.0045 or Manual Entry (2.0040 to 2.00075 is likely to be the most ideal)
Stop Loss 2.0200
Target Profit 1.9800

Additional Details:

  • The Stop Loss is set to 2.0200 which corresponds with the trend line that was broken as well as the parallel channel that has been identified.
  • I've drawn a much steeper trend line in dotted blue...look for price to react to this as well for an entry.
  • Daily Close back above the solid blue line would negate this trade and ultimately make it incredibly likely that the channel will break to the upside very shortly thereafter

Please do your own analysis before entering a trade. If you like what you see or would like to learn more, feel free to comment, follow or "like"
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