GBP CAD- 500 PIP RALLY IN NEXT FEW DAYS?




This pair has started to break out above the latest Pennant setup on the Daily Chart which could set the stage for strong Pip gains in the days ahead. Before this takes place, however, we would need to see a stronger Bull Candle (Normal Candle) than the one that has appeared at the end of Monday's session. 



DAILY CHART - WEAK CANDLE BREAKOUT



Once we have this signal, we will be able to enter with greater confidence that another 200-Pip trade will be there for the taking.


The expected rally would continue the momentum of the major break out above the Outer Downtrend Line, which started a few weeks ago on January 21, 2015.



DAILY CHART- OVERALL DOWNTREND



DAILY CHART- START OF TREND LINE BREAK



As is typical of the Currency Market, breaks of major barriers such as these tends to take place with a break of a large Consolidation - a Pennant in this scenario. What this means is that any breakout from the smaller Pennant Setup would be supported by the momentum of the breakout from that larger Pennant- leading to profit targets being hit in a very short time.

If we see the hoped for Bull Candle this week, it will need to first go through our gauntlet of checks and balances prior to entry.



TRADE SHEET CHECKLIST


Once these criteria are met, another strong trading gain will be added to our growing trading accounts.



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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


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