GBP CAD - 200 PIP SHORT TRADE OR IMMINENT RALLY?




This pair has given us an ABC Reversal bearish signal to move short in favour of the CAD, but the ultimate target is somewhat ambiguous.

On the one hand, it could be shaping up to complete the Resistance of a large Range. This would mean that a very profitable move of several hundred Pips would be possible for us.


DAILY CHART- SCENARIO 1




















On the other hand, it could already be at the Support of a much smaller Range that was already formed. 


DAILY CHART- SCENARIO 2




















Right now, the market has started to move lower but appears to be pulling back at the Support of the smaller Range.


DAILY CHART


















If this is in fact the real Range Support that is being "obeyed", then a move lower will not take place for some time. We would therefore have to wait on another Daily bearish signal to trade short. 

However, this pullback may simply be the market reacting to a past Support area. It would therefore not necessarily be preventing the formation of a new Range. If so, it would take the form of a similar setup in 2009 on the GBP AUD.



DAILY CHART



















Time will tell. In the meantime, we have to make a decision as to whether to keep or cancel the current Trade Setup now open for this trade.



TRADE SETUP





________________________________________


________________________________________

Duane Shepherd
(M.Sc. Economics, B.Sc. Management and Economics)
Currency Analyst/Trader
Contact: shepherdduane@gmail.com
Twitter: @WorldWide876
Facebook: DRFXTRADING
Website: www.drfxswingtrading.com

Comments

Popular posts from this blog

STRATEGY NOW UP BY 23.78% WITH RECENT 2.00% USD CHF TRADE

NEW YEAR OFF TO A FLYING START - 231 PIPS & 194 PIPS ON NZD CHF TRADE

AGGRESSIVE 3.13% RETURN FROM THE AUD USD PENNANT CONSOLIDATION BREAKOUT