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Apr 20, 2017 7:03 AM

GBPCAD Upward Channel April 20, 2017, Short Short

British Pound/Canadian DollarFXCM

Description

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.

Trade closed: stop reached

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