GBP CAD FORMING LARGER RANGE?
GBP CAD appears to be forming a larger Range Setup than the one previously traded. This could provide a larger range of Pips to target if we see a strong Bearish Signal in the next few days.
This was the previous setup. It had formed a Range Setup that was initially broken short, but was followed by a sharp, False Breakout Reversal. This took it to the Resistance area where it began to pullback by a few pips.
DAILY CHART - REVERSAL SIGNAL
With this setup, it would have been expected to either break out at the other end of the Range to continue long, or come back inside to continue within the Range (Figures 36 & 37, Currency Trading With the Daily & 4 Hour Charts). However, after re-examining this chart, it appears that the Double Bottoms and the rally may actually have formed the Support for a larger Range.
DAILY CHART- LARGER RANGE?
If we see a strong and convincing setup and signal below this Uptrend Line, it will start this move to Support. As to which Support it will be targeting, we will just have to wait and see.
(M.Sc. Economics, B.Sc. Management and Economics)