GBPCAD | Perspective for the new week | Follow-UpPrice activities moved the other direction as price Breakout of the uniform range between CA$1.76000 and CA$1.68000 as the Pound gained traction following a recent reduction in the price of Oil (explained in my last publication, see link below for reference purposes); I shall be looking forward to Bullish entries in the coming week(s).
Tendency: Uptrend ( Bullish )
Structure: Breakout | Supply & Demand
Observation: i. Demand Level III has remained "Supported" since December 2020 as we have experienced the consecutive rejection of this level in the past three months.
ii. The last quarter of 2020 witnessed the emphatic rejection of CA$1.75000 not until a Breakout of this level in late January 2021 giving us a clue that participants have finally gained a pint of confidence for the Pound.
iii. However, since the Breakout of CA$1.74000 early this year, this level appears not yet strong enough to hold price ( a feat showing doubts in the recent Bullish bias) as we experienced a significant breakdown in mid-March 2021.
iv. This brings my attention to Demand Level III, which has held price eight different times in the recent past and with the Bullish engulfing candle springing out of this level last Thursday, I shall be expecting a Breakout/Retest of CA$1.74000 (Demand Level IV) in the coming week(s) to join the rally.
v. As CA$1.74000 remains my Key level going into the new week, I shall be waiting to see a Breakout/Retest of this level (anywhere above Demand Level IV) to join the rally.
Trading plan: BUY confirmation with a minimum potential profit of 400 pips.
Risk/Reward : 1:4
Potential Duration: 10 to 20days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
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.
