GBPCAD, Daily
As we know Canadian dollar and WTI crude oil have an inverse relationship were CAD usually goes up if the price of oil appreciates and vice versa. The strong drop in the price of oil lifted GBPCAD higher and created a significant gap to the upside. Markets have however been selling the pair from the opening of trading in the Asian session and now with the oil price apparently finding some support it’s I’m looking at GBPCAD as a potential short play. Gaps are often closed before markets start to move again in the direction of the prevailing momentum. If crude oil (USOIL in MT4) continues to attract buyers and is likely to close the gap then it makes sense to expect GBPCAD to move in the opposite direction.
I’m looking for sell signals in GBPCAD a sell area between 1.8350 and 1.8380 with targets as follows. Target 1: 1.8276 – 1.8304 and Target 2: 1.8183 – 1.8230. If price moves to Target 2 we are interested in turning the position around and go long in the pair with an idea to take money off the table at 1.8304 (T1) and 1.8390 (T2).
Using strict risk management is recommendable as usual. If you don’t know how to manage your trading risks professionally you are welcome join to my free webinars to learn more.
Janne Muta
Chief Market Analyst
If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:
http://www.topforexbrokerscomparison.com
About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.