GBP/CAD Rips Higher off Confluence of Support

forexbrokr (67)in #forex • 5 years ago

Direct from the desk of Dane Williams,
This is not your average forex broker blog.

First up, if you're not getting my Inner Circle ⭕️ email and you read my analysis on this blog, then click the link and join now. I analyse higher time frame zones here on the blog and then talk about zooming in and actually day trading around them on the email.

Afternoon team,

It just so happened to be that exactly a week ago, last Friday, I wrote about GBP/CAD respecting a confluence of support. In that particular analysis blog, I identified that price was above, but close to higher time frame support.

Price subsequently pulled back, so I yesterday took to my Inner Circle ⭕️ email to talk about taking a GBP/CAD long trade. A low risk, high reward setup that members took and took 300 or so pips profit on, within a day.

Just take a look at the way price bounced out of our higher time frame support zone, and ripped higher on the daily chart below.

GBP/CAD Daily:

You can see that GBP/CAD has bounced, but now immediately hit the next zone of resistance. Sure, there's room to move higher within that channel, but that horizontal zone is going to be hard to ignore.

Not to mention we have GBP/USD moving right into a higher time frame resistance zone of its own that you can see on the Cable daily below.

GBP/USD Daily:

This all points to closing any GBP/CAD longs that you may still have open. We got an entry so close to support, that while 300+ pips higher here, you no doubt have a 1:3 risk:reward trade at the absolute minimum.

Lets see how price reacts here at resistance before we look to continue trading the pair.

Best of probabilities to you,

Dane.