Dear Traders Trading Price Action,
Today is a good day for the traders trading price action. There are a bunch of trading setups, so I have picked one of them. The GBP/CAD currency pair is showing all of the necessary parameters that we need for a bullish signal. There is a major support zone around the levels of 1.7500-7550. The price has just bounced off nicely from that level market by a low early in September this year. The bounce resulted in a pattern close to bullish-engulfing, which shows the willingness of the buyers to get involved around those levels. This signal is significant also because the sellers could not break this major support. They were unable to win over the bulls in an already established short-term bearish move from the highs of 1.8300. This inability signifies the meaning for this signal’s trading price action.
I am looking to enter in a long trade either around those levels (if I consider taking a bit more risk) or will wait a bit longer for a correction towards 1.7690. Then, a long position established at those levels should be accompanied by a stop just under the lows of Friday’s session- 1.7530. The initial target would be a bit short-sighted- at around 1.7900. If the pair does not show hesitance and more bearish action around those levels, we might see GBP/CAD rising up to 1.8300 and even above.
CHECK OUT THE SECOND TRADING IDEA TODAY– TRADING PRICE ACTION AUD/USD