Sophia Todorova is the host of the live trading room for the London session. She has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens. To Trade Live with Sophia Join Winners Edge Trading Premium Services.
I am posting this article as a follow-up to the one posted here about two weeks ago on the Gbpcad currency pair. A weekly chart was used to indicate a bullish range breakout, and the subsequent resistance that kept it from following though on the breakout. Since, then there has been quite a bit of congestion, which was followed by a breakdown through a daily and 4hr up sloping trendline. This down move, however, stopped short at the 1.5900 support, and bounced back towards the broken trendline. This is where I see a potential trading opportunity. See chart below for reference:
Trading Strategy
There is Canadian news coming out shortly, so caution is required. I am looking for a retest of 1.6250-1.6300 for shorting opportunities at the underside of the trendline. This area lies in the zone of the .618 fibonacci retracement level, using the swings from 1.6471-1.5877. Targets are: 1.6475, 1.6115, and 1.6020. Before entry, I will be looking for bearish candlestick formations to confirm.
Thanks for reading. If you are interested in trading this with me, it is a good idea to follow me on twitter, since I am able to give quick updates there, and you will be able to get them instantly.
When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions.
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