GBPCAD POTENTIAL SHORT OPPORTUNITY (1H & 4H CHARTS)
Updated
GBPCAD POTENTIAL SHORT
I was doing my pre-market analysis for the week and something about this pair had caught my eye. I was looking at global correlation between the currency pairs and the market had showed me that the CAD gained a lot of strength last week across the market. Due to this it had led to a CAD strengthened market which has now led into some trading opportunities. If you look at this pair on the 4H timeframe you can see the market make an attempt to make a new high and come into structure around 1.71600. This had immediately been followed by a very strong seller momentum push to the downside; not only moving to the downside but breaking the recent structure and swing low on the 1H and 4H charts. Lets take a look at where the trading opportunity may be.
4H Chart:
*on this timeframe chart you can see that the market had come into structure around 1.71600 and was immediately followed by a very strong seller push to the downside
*when the market had been pushed to the downside it not only was very strong but it also had broken structure on the 1H and 4H charts (showing seller control)
*the sellers are a lot stronger than the previous buyer in this case and therefore led to a potential short opportunity
*watch for a weak re-test by the buyers into structure if we see one
1H Chart:
* on the 1H timeframe look for a weak pullback by the buyers AS WELL AS a strong seller interest to show up again
*we want to see that because it will show to us that the seller is still interested in taking prices lower
*use this timeframe for a good risk/reward ration setup!
PLEASE LIKE AND FOLLOW MY PAGE FOR MORE PROFITABLE TRADE SETUPS! CHEERS!
I was doing my pre-market analysis for the week and something about this pair had caught my eye. I was looking at global correlation between the currency pairs and the market had showed me that the CAD gained a lot of strength last week across the market. Due to this it had led to a CAD strengthened market which has now led into some trading opportunities. If you look at this pair on the 4H timeframe you can see the market make an attempt to make a new high and come into structure around 1.71600. This had immediately been followed by a very strong seller momentum push to the downside; not only moving to the downside but breaking the recent structure and swing low on the 1H and 4H charts. Lets take a look at where the trading opportunity may be.
4H Chart:
*on this timeframe chart you can see that the market had come into structure around 1.71600 and was immediately followed by a very strong seller push to the downside
*when the market had been pushed to the downside it not only was very strong but it also had broken structure on the 1H and 4H charts (showing seller control)
*the sellers are a lot stronger than the previous buyer in this case and therefore led to a potential short opportunity
*watch for a weak re-test by the buyers into structure if we see one
1H Chart:
* on the 1H timeframe look for a weak pullback by the buyers AS WELL AS a strong seller interest to show up again
*we want to see that because it will show to us that the seller is still interested in taking prices lower
*use this timeframe for a good risk/reward ration setup!
PLEASE LIKE AND FOLLOW MY PAGE FOR MORE PROFITABLE TRADE SETUPS! CHEERS!
Trade closed: target reached
TARGET WAS HIT. DIDN'T QUITE GET THE FULL PULLBACK BUT AGGRESSIVE POSITIONS HIT TAKE PROFIT.
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