Gbpcad, is a favorite currency pair of mine. It sometimes sit in a range for extended periods, but once it gets moving, it really does moves well. At the moment, I have noticed a possibly great trade opportunity setting up on the daily timeframe. Indicated by the chart posted below, price is now testing the daily inner trendline. Usually, it is here that I would be looking for sell opportunities, but here, I am hoping for a trendline break in order to go long.
The reason for my bullish ‘bias’ is the fact that we have hit weekly support. A look at the weekly timeframe will show a beautiful set of double bottoms. Regarding trading strategy, I will be watching for a 4 hr candle to close above its trendline, for my signal to buy. A slightly less aggressive strategy is to wait for the daily candle to close above, for that extra bit of confirmation before going long. My targets for profit will be 1.5750, and 1.5900.
Please ensure that you practise good risk management if you are considering taking this trade. You might need to use a bigger- than-average stop, so try to compensate for that by cutting your position size down. In this way, you won’t be risking more than usual.
All the best…Trade Confidently