GBPCAD Possible Cypher formation and long-term price speculation
Updated
I can see a possible Cypher formation on the GBPCAD pair.
Bearing in mind the market conditions (oversold) as well as the long term support level at 1.66000 (complying also with the falling wedge formation), I trust the Cypher pattern to be completed, trade short with take profit targets on the 38.2% and 61.8% Fib retracement levels of CD leg.
In this case I believe that a secondary target may be hard to get due to previous structure support levels.
This trade need to be monitored but I believe that the price will go long (again) as soon as the price hit the profit target(s) of the Cypher (or around 1.67600's), hopefully break structure and perform as expected (see price ranges) to reach 1.72800's.
Decisions at reversal points should be re-checked taking into account current market conditions. Trade according to you style.
Feedback is much appreciated.
Thank you tntsunrise for the original idea, I cross-checked and provided my analysis.
Bearing in mind the market conditions (oversold) as well as the long term support level at 1.66000 (complying also with the falling wedge formation), I trust the Cypher pattern to be completed, trade short with take profit targets on the 38.2% and 61.8% Fib retracement levels of CD leg.
In this case I believe that a secondary target may be hard to get due to previous structure support levels.
This trade need to be monitored but I believe that the price will go long (again) as soon as the price hit the profit target(s) of the Cypher (or around 1.67600's), hopefully break structure and perform as expected (see price ranges) to reach 1.72800's.
Decisions at reversal points should be re-checked taking into account current market conditions. Trade according to you style.
Feedback is much appreciated.
Thank you tntsunrise for the original idea, I cross-checked and provided my analysis.
Trade closed: stop reached
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