The GBP is nowhere near done with its bull rally.
I hope all of you were trading in favor of the GBP all this month.
I gave a heads up to some family before September 1st and I hope they enjoyed the month-long ride.
We have a morning star formation almost completely formed on the monthly.
Looking for it to finish the bull candle before October starts. Then...
On the 4hr chart the GBPCAD established a low in the 1.59600 zone.
Price moved from this area to make a high in the 1.66800 zone.
Since 20 September 2019 price dropped over 360pips from the 1.66800 zone,
just to meet support in a zone which was formed on 23 August 2019.
All of the above now provides a good landscape to consider long entries on the...
two potential scenarios on GBPCAD.
it all depends on the breakout.
if the market breaks above the triangle,
the market will most likely will go higher.
if bears will break below the triangle, it is a perfect signal to short the market.
*This idea is labeled as short because I will trade the pair only in case of bearish breakout
Things don't look like they'll be improving for GBP on a macro level anytime soon, and the algo generated a short signal for this pair on Friday's close.
It's true the RSI is under 30 here and many interpret that as "oversold" but in Spot ForEx "oversold" isn't really a thing, so it's sufficient that the RSI is under 50 to give an approximation of the strength of...
On GBPCAD we have a potential short setup based solely on Fibonacci levels.
After a large drop , price rebounded up to the PINK .618 Fibonacci retracement level , which coincides with the RED 1.272 and 1.414 extension of the recent bullish leg.
High momentum rejection followed and price moved down until it found support at the ORANGE . 618 retracement
Price rejected 1.7360, came back to 1.7540 area, and then fell back down to 1.7360.
If there is a candle closure above 1.7540 (neckline), there is a double bottom. After that confirmation i see the price move to 1.7700