✅ GBP/CAD Trading Plan (Long Position)
Strategy: Reversal Trade + Break of Trendline
Timeframe: 4H
Date: April 13, 2025
Pair: GBP/CAD (British Pound / Canadian Dollar)
Platform: OANDA (via TradingView)
🔍 Market Insight
• The pair has been in a strong downtrend.
• Price is now:
• Bouncing off a clearly marked support zone (~1.8050–1.8100).
• Broke a descending trendline, suggesting a shift in momentum.
• Formed multiple bullish wicks and a bullish engulfing pattern near support.
• BBandLE (buy entry signal) confirms buying pressure.
🎯 Trade Entry
• Entry Price: Around 1.8140
• Reason for Entry:
• Bounce off strong demand zone (support)
• Bullish momentum shift after a trendline break
• Price showing higher lows forming at support
• Clean risk-to-reward zone mapped out
📉 Stop-Loss (SL)
• SL Price: 1.8045
• Risk: ~95 pips
• Justification:
• SL placed below the rejection wicks and structure low
• Gives trade room in case of volatility or retests
📈 Take-Profit (TP)
• TP1: 1.8300
• Early resistance and previous structure
• Take 50% off here and move SL to breakeven
• TP2: 1.8680
• Final target at the previous swing high/resistance zone
📊 Risk-to-Reward Ratio (RRR)
• TP1 RRR: ~1:1.7
• TP2 RRR: ~1:5.5
• Overall trade has excellent reward potential with tight risk
🧠 Trade Management
• Monitor price action at 1.8300 zone
• If bullish momentum continues strongly, you can trail SL and ride the wave
• If price stalls or prints reversal signals, secure gains early
⚠️ Risks
• GBP or CAD economic data/news may cause volatility
• Oil price surges could strengthen CAD unexpectedly
• Failure to hold 1.8050 invalidates this reversal idea
🛠️ Contingency Plan
• If price returns to 1.8050:
• Watch for bullish rejection patterns again for possible re-entry
• If price closes below 1.8040, exit and wait for a fresh setup
📅 Time Horizon
• Swing Position: Hold for 3–7 trading days
• Adjust if fundamentals or price action changes
Strategy: Reversal Trade + Break of Trendline
Timeframe: 4H
Date: April 13, 2025
Pair: GBP/CAD (British Pound / Canadian Dollar)
Platform: OANDA (via TradingView)
🔍 Market Insight
• The pair has been in a strong downtrend.
• Price is now:
• Bouncing off a clearly marked support zone (~1.8050–1.8100).
• Broke a descending trendline, suggesting a shift in momentum.
• Formed multiple bullish wicks and a bullish engulfing pattern near support.
• BBandLE (buy entry signal) confirms buying pressure.
🎯 Trade Entry
• Entry Price: Around 1.8140
• Reason for Entry:
• Bounce off strong demand zone (support)
• Bullish momentum shift after a trendline break
• Price showing higher lows forming at support
• Clean risk-to-reward zone mapped out
📉 Stop-Loss (SL)
• SL Price: 1.8045
• Risk: ~95 pips
• Justification:
• SL placed below the rejection wicks and structure low
• Gives trade room in case of volatility or retests
📈 Take-Profit (TP)
• TP1: 1.8300
• Early resistance and previous structure
• Take 50% off here and move SL to breakeven
• TP2: 1.8680
• Final target at the previous swing high/resistance zone
📊 Risk-to-Reward Ratio (RRR)
• TP1 RRR: ~1:1.7
• TP2 RRR: ~1:5.5
• Overall trade has excellent reward potential with tight risk
🧠 Trade Management
• Monitor price action at 1.8300 zone
• If bullish momentum continues strongly, you can trail SL and ride the wave
• If price stalls or prints reversal signals, secure gains early
⚠️ Risks
• GBP or CAD economic data/news may cause volatility
• Oil price surges could strengthen CAD unexpectedly
• Failure to hold 1.8050 invalidates this reversal idea
🛠️ Contingency Plan
• If price returns to 1.8050:
• Watch for bullish rejection patterns again for possible re-entry
• If price closes below 1.8040, exit and wait for a fresh setup
📅 Time Horizon
• Swing Position: Hold for 3–7 trading days
• Adjust if fundamentals or price action changes
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.