GBPCAD | Perspective for the new week | Follow-up
After moving over 400pips since our last publication on this pair (see link below for reference purposes), the price continued to find lower lows as it Breaks down of CA$1.71500 thereby making the Breakout on the 19th of April a false one (a feat recognized by the plunge in oil price).
The Supply zone around CA$1.71000/1.72000 zone emphasizes the selling pressure at this juncture in the market as the Bears continue to hunt down the weekly lows. A rebound in oil prices coupled with the release of better-than-expected domestic Retail Sales figures appears to have prompted fresh "selling" as Loonie appears to regain her dominance in the nearest future.
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Channel
Observation: i. Connecting the lower highs and lower lows of price with parallel trendlines since Jan 2021 depicts a downward trend and emphasize the prevailing direction of price action.
ii. The latter part of last month (Apr 2021) witnessed a successful Breakdown of CA$1.715000 (Demand zone) - a level that held price "supported" for 43 days.
iii. Following the Breakdown of CA$1.71500, we saw price reject this zone multiple times in the last 17days to confirm a Supplication zone @ CA$1.71000/1.72000.
iv. In this regard, below Key level II @ CA$1.70800 shall be a yardstick for selling opportunity in the coming week with the aim of completing the Channel... Trade consciously :)
Trading plan: SELL confirmation with a minimum potential profit of 300 pips.
Risk/Reward: 1:6
Potential Duration: 8 to 14 days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
The Supply zone around CA$1.71000/1.72000 zone emphasizes the selling pressure at this juncture in the market as the Bears continue to hunt down the weekly lows. A rebound in oil prices coupled with the release of better-than-expected domestic Retail Sales figures appears to have prompted fresh "selling" as Loonie appears to regain her dominance in the nearest future.
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Channel
Observation: i. Connecting the lower highs and lower lows of price with parallel trendlines since Jan 2021 depicts a downward trend and emphasize the prevailing direction of price action.
ii. The latter part of last month (Apr 2021) witnessed a successful Breakdown of CA$1.715000 (Demand zone) - a level that held price "supported" for 43 days.
iii. Following the Breakdown of CA$1.71500, we saw price reject this zone multiple times in the last 17days to confirm a Supplication zone @ CA$1.71000/1.72000.
iv. In this regard, below Key level II @ CA$1.70800 shall be a yardstick for selling opportunity in the coming week with the aim of completing the Channel... Trade consciously :)
Trading plan: SELL confirmation with a minimum potential profit of 300 pips.
Risk/Reward: 1:6
Potential Duration: 8 to 14 days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously
