GBPCAD - Bearish trend continuation and potential sell setup

The overall down trend appears to be holding for GBPCAD. Furthermore, the beginnings of a possible bullish bat pattern are taking shape. However, the current BC retracement is a little short at this point. Nevertheless, the pattern appears to be in proportion and a sell setup is likely before the end of the week or early next week.

Comment:

Price has moved lower suggesting that it will continue towards the projected D area. A pending sell order has been set a few pips below yesterday's low.

Trade active:

Order filled at 1.6660 and price has since moved 50 pips in favor of the trade. SL has been moved to BE.

Comment:

So far, so good. The position is up about 90 pips as of this writing and a couple things happened today that suggest this position may end well (better than break even).

First, price was able to break yesterday's low. Second, there is now upper wick on today's heiken ashi candle. This is a classic heiken ashi strenght candle that suggest price will continue downward in the coming days.

At this point, the trade is risk free. So, there is little concern about how quickly this position progresses and there is only profit to be gained from this trade. For good measure and to cover interest costs, the SL has been moved to +10 pips.

Trade closed: stop reached:

Price came back to the SL and the position was closed for +10 pip.