The GBP/CAD has been stuck in a 400 pip range for most of 2014.
This morning, the pair reached its 200 Day Simple Moving Average (Daily Chart) which also happens to be the range low for the pair as well.
On ranging pairs, one of my favorite strategies is to buy at support on bullish divergence with the CCI oscillator. When inspecting this pair closely on a 3 hr chart time frame, we have 2 instances of bullish divergence in that the price has created a lower low while the oscillator is creating a higher low.
This combination suggests price is running into support on slowing momentum which is what I want to see on a range pair.
This morning, the pair reached its 200 Day Simple Moving Average (Daily Chart) which also happens to be the range low for the pair as well.
On ranging pairs, one of my favorite strategies is to buy at support on bullish divergence with the CCI oscillator. When inspecting this pair closely on a 3 hr chart time frame, we have 2 instances of bullish divergence in that the price has created a lower low while the oscillator is creating a higher low.
This combination suggests price is running into support on slowing momentum which is what I want to see on a range pair.
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www.seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
EW Express - bit.ly/elliottwaveexpress