Time To Buy ? Oversold Move To 1.67 ??

TheFxAce Updated   
FX:GBPCAD   British Pound / Canadian Dollar
Since the close of last month, this pair has seen a sharp decline, plummeting almost 1,000 pips. Notably, for 16 consecutive days, it's registered a new low.

Given its extremely oversold conditions, and it has now entered a Daily BUY/DEMAND zone, beginning around 1.64. As a result, I anticipate a short-term upward correction, potentially reaching the Weekly resistance level of 1.67 or even higher. This point could be an opportune moment for long-term sellers to re-enter and drive prices down towards the Weekly BUY/DEMAND zone at 1.60.

I've entered a trade based on a 4-hour signal from my TRFX indicator. Check out the image below

The 15-minute charts indicate a solid support around 1.64, highlighted by today's brief dip to a new low before a rapid rebound. You can examine this here:

I am well aware that this is going against a strong downward push though given the extremely oversold conditions and the fact it is the end of the Month and end of Q3 profit taking may well allow this position to go my way.

I will be taking profit off the table as this pair moves up and stop loss is down towards 1.63 if it does breakdown again and the stop is hit I will look for another re-entry signal as this is a good R/R trade.

Hope you enjoyed the analysis
Trade moving nicely 50% has been closed and STOP LOSS moved to entry price :)
Trade closed: target reached:
1.67 target reached :)

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