Several weeks ago I posted about a Triangle Breakout on the GBPCAD outlining ideally what we were looking for to happen over the next several days. The market is an ever evolving beast and we as traders need to be aware of all possibilities and stay flexible. I'm providing this update on the GBPCAD trade hopefully to help people understand that you don't need to complicate the market, it really is as easy as just identifying what the market is doing with price action. Whether you are a scalper, a swing trader, long term trader or some other type of trader it's important to have a good entry on any position. Buying High and Selling Low are rarely advantageous.
Nobody knows exactly what the market will do or how long it will take to execute a specific move. The market in the GBPCAD case shown below did not move in a 'timely manner' relative to our trading time frame...but it did stay 100% true to the we already outlined.
Here's a quick recap of what happened over the last month:
- Triangle Pattern, Key Technical level broken confirmed by a daily candle close
- New high set at around 2.0330 - A very important level as this is always the last confirmation needed.
- A retest of former resistance as new support
- 2 additional retests of 2.0330 level, 1 additional retest of major triangle level.
Since the last retest of the triangle support, we had a shallow bounce followed by a favorable daily candle off the 2.0330 level. The entire move from 1.99 to 2.03 has obeyed a 4 hour shown below. No matter what kind of trader you are this could prove to be an excellent trade opportunity for you.
Here's what we're looking for:
- Confirmed Break of the 2.0330 level on preferably the 4 hour/Daily Chart
- Once confirmed, we will look to enter a buy position as close to the 2.0330 level as we can.
- Let the trade ride and continue it's trend up.
GBPCAD Pending Buy Limit 2.0350 or Manual Entry as close to 2.0330 (AFTER confirmed break, riskier to enter on a new high as it may only be a short term spike)
Stop Loss 2.0300
Take Profit 2.0500
Take Profit 2: 2.0800
Please do your own analysis before deciding to enter any trade. If you like what you saw here, feel free to comment, "like" or follow. Questions are always welcome.