Break & retest of daily support turned resistance, & price has closed below this level on the 4 hour showing that this level can now be validated as new structure. Will be watching for a further move lower from here..
GBPCAD is approaching a support zone. Along with that the 100D EMA at 1.7325 can also support the price.
Hence, traders can long for BUY at 1.7315-1.7345 with SL below 1.7265.
TPs can be set at 1.7400 and 1.7550 respectively.
For daily signals, updates and ideas, check my signature at the bottom of this idea.
As we take a look at GBP/CAD in the short term.
We currently have formed a HTF Supply Pivot and a LTF Supply Block within our price structure.
I am expecting price to target our HTF Support area for a +100 pip drop. Idea invalidated if we break and close above our green supply area.
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Violent reversal lower based on the following analysis:
1. Parabolic rise.
2. The 3/8th Major Harmonic (dark red horizontal line) is a monstrously powerful pivot level. When prices are rejected at this harmonic level, it’s generally a fast and big drop.
3. The move may be exacerbated by the presence of a new swing high being found during the appearance of a new...
Technical indicators support downside in the pair. Scope for weakness till 100-DMA.
Support levels - 1.7342 (cloud top), 1.7320 (trendline), 1.7227 (100-DMA)
Resistance levels - 1.7398 (50-DMA), 1.7440 (5-DMA), 1.7511 (23.6% Fib)
Good to go short on upticks, SL: 1.74, TP: 1.7320/ 1.7230
The GBP/CAD Daily time frame is in
an up channel. The market hit the
top of the channel and is now
showing bearish waves towards the
bottom of the channel price point
1.7000 about +444 Pips away. I am
going to turn to a one hour time frame
and will look for counter trend line breaks
bearish towards the bottom of the daily
GBP/CAD One hour time frame is in an up
channel. The market is showing signs moving
from the top to the bottom of the channel target 1.7050 about
+435 Pips away. I am looking for counter trend line
breaks bearish for the rest of the week.