GBPCAD | Perspective for the new weekMy last publication successfully predicted 500pips in our direction (see link below for reference purpose) and it is now obvious that the GBP/CAD has seen the movement of price caught within a uniform range sandwiched in between CA$1.76000 and CA$1.68000. Since the beginning of the year, GBP/CAD has been trending lower as it appears to have found a new Supply zone @ CA$1.74000.
A better oil outlook in the new year continue to support the Canadian Dollar as an increase in oil production might stimulate market demand hereby boosting the Canadian currency.
Tendency: Downtrend ( Bearish )
Structure: Channel | Supply & Demand
Observation: i. Since June 2020, the price has respected the Flat Channel with no signs of Breaking the Supply zone as we continue to find Lower Lows.
ii. The new Supply zone found @ CA$1.74000 shall be a yardstick to maintain the Bearish bias in the coming week(s).
iii. This been said, a significant Breakout of CA$1.75000 might render this bias invalid... Trade consciously!
Trading plan: SELL confirmation with a minimum potential profit of 450 pips.
Risk/Reward : 1:3.5
Potential Duration: 7 to 15 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
