After failed to break support zone, GBPCAD break up parallel channel down, and forming cup and handle consolidation pattern. This is fresh start to begin long journey to reach double top at monthly 618. With this setup, we have 4 target : a. CSR as first target at 1.6723 b. 618 H4 TF at 1.7059 c. Daily chart fibonacci retracement at 1.7254 d. Double top are the last target for monthly chart fibonacci retracement at 1.7748 With agressive stoploss bellow support zone (1.6210) this setup have R/r ratio 1:21
Open long : 1.6328 Stoploss : bellow support zone at 1.6210 or use your money management rules Takeprofit : 1.7748 target profit in pip : 1415 pips Risk and reward ratio = 1:21
Disclaimer : This analysis not include personal feeling/opinion, and pure base on technical analysis Trading foreign currencies can be a challenging and potentially profitable opportunity for investors. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly, do not invest money you cannot afford to lose.
Trade active
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small timeframe setup (M15 timeframe)
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keep an eye on this news : GBP Bank of England Rate Decision GBP BOE Asset Purchase Target ------------------------------------------------------ shift your stoploss to + position
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Reach profit at Checkpoint 1, +430 pip ^^ congrats
Thanks for the great analysis.
Do you think it will hold with the news happening next week for both CAD and GBP as you have mentioned a very tight SL for this ?
AzrulAzir
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@salmanijaz, swinger tight SL = 118 pip. because we aim 1400 pip. If news impact for 114 downside = gameover. If you follow my analysis, please use small lotsize or calculate your equity,
note : "small lot for big pip is better than big lot for smal pip"
salmanijaz
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@DianKemala, "small lot for big pip is better than big lot for smal pip" well said :) Can not agree more with that
So this means that this analysis will not be valid once we are below the SL. It happens that sometimes there is a sudden drop or surge in the price due to these news but it does not effect the overall dynamics of the trade in the long run.
AzrulAzir
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@salmanijaz, sometimes news can be techncial analysis enemy number one. The beauty of chart destroy with only one high impact news release. But overall, with news or without news bellow support zone, this signal invalid anymore, because Cup and handle failed and support break down.
salmanijaz
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@DianKemala, In my view news are always technical analysis enemy. :(
Thanks for the detailed and prompt replies. I will keep a close eye on this trade. There will be many good entry points in this trade as we proceed in the next month :)
AzrulAzir
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@salmanijaz, yes you are right, if this analysis run well, then we can get many long position in smaller time frame.
AzrulAzir
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@DianKemala, thats why i use 4 checkpoint for bullish movement
LuckyLaki
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Thanks Dian! :)
Wave-Expert
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it's going to touch stop loss easily !!! btw best of luck for this trade