FullTimeTrader
Long

GBPCAD-many reasons to long

FX:GBPCAD   British Pound/Canadian Dollar
290 5 12
Doing a top-down analysis i found very interesting reasons for a bullish bias.
W1 chart analysis:
snapshot

The trendline and 55 ema are very important for me.

Here at D1 chart we see a three drives pattern and 0.7860 fib retracement.

Considering the currency strenght analisis: the CAD is overbought. The GBP is recovering against other currencies. I expect this pair to recover also.
I expect a retracement at least to the 0.38 fib retracement.

Best regards.
Bravo!
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Great analyses!
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Very nice technical setup.
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Hi, I am not in agreement here. The RSI divergence is a red flag that would make me reconsider the trade, the fundamentals also seem worrying. The CAD has devalued with oil and that appears to have bottomed, recent data out of Canada has been improving. I agree that the GBP has seen a real boost in recent days however the impending General Election there and the very real possibility of a period of political instability has arisen. A minority party running the UK tends to end badly and if that minority is Labour led it will probably end very badly.
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FullTimeTrader SteveTobin
Hello, i agree with your fundamental information, but from my personal experience not all the trades are fundamentals, we must choose when to enter based on technicals also. You see long term im bearish after completion of the EW cycle. Here i expect a retracement at least to the 0.38 fib retracement and the continue the bearish cycle.
We can not wait after the elections to make an entry. The price never falls sharply without making a deeper correction. This pair is overextended.
I expect the oil to make a retracement this days. Lets see what happens.....
USOIL-bearish butterfly
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