Trading Price Action GBP/CAD

The trading idea from last time was stopped just before it had chance to reverse. As I am usually saying, it is much harder to go counter-trend than to go with the trend. That is why, all those contrary trades involve higher degree of risk than the trades that go with the trend. A great example was the trade from last week, namely the long AUD/CAD trade. I would say that the entry was very close to a reversal point and we are probably going to experience this reversal point very soon. The point is that it is harder to anticipate moves. That is why, going with the trend after a short period of congestion is the best way to enter the market. And that is also why, quessing whether now is a good moment to go long AUD/CAD is riskier- it is against the trend.

Today’s signal is coming from another Canadian pair- GBP/CAD. As we can see from the chart, this currency pair has tested many times the level of 1.7800. This support level has managed to hold after numerous attempts of the price to break it. We can see a great amount of hesitation from the past 4 trading sessions. Today’s candlestick pattern is giving another confirmation that the trend is going to continue upwards. We can see a nice bullish engulfing pattern forming on the daily time frame. GBP/CAD is showing us finally some decision and fresh bullish optimism. The buyers from the lower levels of 1.7500 have been joined by some fresh bulls.

Therefore, today’s trading idea is coming from this currency pair. I would be looking to enter in a long position around the level of 1.7875. My stop loss would be placed at 1.7780. The initial price target level is 1.8050 and then 1.8250 consequently.

Happy Trading,