Looking at a finer granular level (H4), 3 patterns call for a terminal top - Worth balancing against scenario - Rate decision this week is likely to remain unchanged, as per major bank consensus.
As shared earlier, weekly chart calls for additional upwards mobility, whereas Daily/H4 charts are topping off.
Predictive/forecasting model remains silent for now, pending additional data, in contrast to my persona bias, which is neutral-to-bearish.
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"$GBPCAD: TG-1 Target Hit; relief rally to 1.82355 is probable; TG-2 remains open - /x/IMo9r6R2/# via @tradingview "
At this point, a relief rally to the prior relevant structure @ 1.82355 is probable, offering price a relief rally before engaging the second target @ 1.79954.
I usually recommend taking a position NOT relative to the forecast target, but relative to the risk of loss (EAGLE strategy, which seeks the most (E)xtremely (AG)gressive (L)evel of (E)ntry).
If your SL exposes you to risk more than a percentage of your asset, then I would say the choice is not prudent.
Remember that the risk of exposure is a number that pretty much tells you how many times it will tell you to play until you lose everything. So, if you risk 20%, it will take 20% x 5 = 100%, or 5 losing trades to lose 100% of your assets.
In contrast, you could set your risk tolerance at 5% (which is already quite high), and in this calculation, you are flipping the odds to having to lose 20 times before loosing everything.
Now, going to your question, I hope this calculation helps you determine what you are willing to lose, or in the same token, how many times you are willing to play.
Each trade is determined by the trader. At the end, your risk tolerance will define the SL for you.
Hope this helps.
From Twitter feed:
"$GBPCAD Update: Major Rejection Level challenged; Break above 1.84653 would likely deny lower targets - @tradingview"
A major advance has challenged the overhead resistance. A new resistance zone has been defined higher up, but price would need to rally further above 1.84653 to challenge new higher grounds and turn its back on the lower targets.
"$GBPCAD: Look for completion of another KoD; Model bias remains strongly bearish; via @tradingview $GBP $CAD #forex"
Per Twitter MSG:
"$GBPCAD: Price continues to follow forecast pathway; Resistance @1.83262 may represent relief rally via @tradingview"
"$GBPCAD Update: Price reached forecast support; expect bounce then continuation: via @tradingview - $GBP $CAD #forex "