On the Monthly you can see an H&S pattern forming.
On the Weekly chart there's been good selling pressure, it hasn't been able to get passed the monthly pivot resistance for 5 weeks now.
The trend support line is also on the verge of being broken, when it does enter this short.
My first target for this short is 1.44, depending on price action towards 1.40 is...
The buy impulse from last week coincides with a divergence, coming week a correction to about 76 is expected and then a bounce off that support towards 79 price level.
Check price action early coming week and get ready to pull the trigger for a buy order.
Last weeks candle was quite bearish, so far Monday it's been retracing a bit as expected.
If we get a break of S1 and trend support, enter the short trade.
Set the margin for error wide enough, some major news releases coming up:
- CAD Rate decision tomorrow
- Thursday ECB rate decision
- Friday unemployment data CAD
Long term, monthly charts, we're seeing a bounce off of the 0.618 fib support level.
The weekly candle suggests strong support and a good probability for the last leg of the W pattern to be completed.
Watch the intermediate resistance levels till how far this can go for your TP.
GBPAUD is in an upward correction, if it breaks the correction take this short setup.
Be aware of the down trend resistance line and make sure there's some room to move against your short position.
1.67 is a key support zone (around S3 weekly pivot), check price action around this price level!
Last week there was some good buying off previous support level around 0.618 fib, now on towards breaking the 0.5fib level.
Place your buy stop just above it and make sure your stop loss is sufficiently far away to manage some possible volatility with Brexit negotiations going on.
Target for this swing is around the 152 mark, be aware of the resistance levels...
Weekly chart shows this support level is holding well. w
When there's a break of this trend resistance line, buy.
Be aware of;
85 resistance level,
if it breaks, check price action around 86 price level.
86 is key, If there's a continuation of the up trend or another correction down.
Weekly doji has formed on this resistance level R2 monthly pivot, there's some divergence on the daily as well.
If we have a break of trend support, take a short position towards the next support level around 1.46, possibly second take profit around 1.44 monthly pivot.
Weekly candles clearly show more selling bias, to confirm this, wait until GBPCAD breaks the 1.755 support level (Weekly S2).
Sell it till the next trend support zone around 1.7 (Just above monthly S1 pivot).
1.394 level has been support and resistance in the past and price reacted well to it. It couldn't make a convincing break the past few weeks.
Look for a buy till about the 1.433 price level, around R2 monthly pivot.