GBPCAD Upward Channel April 20, 2017, Short
Observation:
Price break Upward Channel (small)
Market decides whether to break Downward Channel (big)
Analysis:
Market cycle high probability of price consolidation.
Previous lower highs could dictate market memory to decide for a price drop.
If market respect dynamic resistance of downward channel (price retrace around 1.73), there is a high probability of price drop.
RSI oversold has the high probability price reached it's peak and could be a sign of reversal.
Conclusion:
Wait for more signals to confirm decision and place tight stop loss to reduce losses.
Price break Upward Channel (small)
Market decides whether to break Downward Channel (big)
Analysis:
Market cycle high probability of price consolidation.
Previous lower highs could dictate market memory to decide for a price drop.
If market respect dynamic resistance of downward channel (price retrace around 1.73), there is a high probability of price drop.
RSI oversold has the high probability price reached it's peak and could be a sign of reversal.
Conclusion:
Wait for more signals to confirm decision and place tight stop loss to reduce losses.
Trade closed: stop reached