GBPCAD: Following the Broader Outlook

GBPCAD Technical Analysis

We have mentioned GBPCAD as an option for our next trade in the weekly market update. We have successfully anticipated but moderate USD weakness in the Forex market but chose to maintain a defensive mode as our current trades in the market are inline with our market sentiment.

We are aware key economic data is due from China, which is why the following trade alert will be issued after the data is released.

GBPCAD Monthly Chart

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GBPCAD Trading Strategy, 24 March, 2015

GBPCAD Monthly Chart, 24/03/15

GBPCAD painted a bullish flag where a firm break was noted in January 2015. The following monthly close signalled indecisiveness while the current session appears to be completing a well-known Japanese reversal pattern. Our general projection for the Canadian dollar is moderate weakness against a basket of currencies aside USD as discussed in the weekly update. The reversal pattern at the end of an uptrend but following a subdued trading activity. We believe the bullish flag is likely to negate the bearish warning but here are the risks.  by the book, an entry will only be made available at the monthly close. However, if strong gains are seen in GBPCAD that will substantially increase size of the stop loss order, which means the trade will be negated unless a moderate retracement is seen in April 2015. The second risk is that the price will break the monthly support at 1.8664 and re-test the upper resistance of the flag before correcting higher.

GBPCAD Weekly Chart

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GBPCAD Technical Analysis, 24 March, 2015

GBPCAD Weekly Chart, 24/03/15

The 15 Weekly Moving Average (EMA) held the price on the first test but again is technically insufficient to issue a trade alert. Despite the potential risks we believe the required stop loss order is minimal bearing in mind this is a monthly/weekly entry. We highlight GBPCAD may re-test  1.8664 before retracing higher. Under the current market conditions we are dismissing the CAD-Crude oil correlation.

GBPCAD Trade Details

GBPCAD long @ market price (1.8699)
Take profit: 1.9620
Protective stop: 1.8571
Risk-Ratio (RR): 1 : 8 (approx.)
Estimated duration: 60 days

27/03/15 UPDATE: As we have updated our traders, GBPCAD took out our protective stop and we were looking to re-enter in today’s session. However, speculations of capital control measures imposed on Greece by Europe resulted in moderate gains in GBPCAD. We are struggling to find a technical entry but we will monitor the charts until the end of today’s session in an effort to join the bullish trend.

07/04/15 UPDATE: We have decided to re-enter GBPCAD long trade at market price (1.8574), protective stop layered at  1.8397, targeting 1.9380.

GBPCAD Weekly Chart
GBPCAD Weekly Chart, 07/04/15

GBPCAD Weekly Chart, 07/04/15

08/04/15 UPDATE: Our decision to re-enter GBPCAD has paid off as the currency pair posted moderate gains in today’s session following the EIA crude oil report. As the trade is in approximately +160 pips profit we are allowing ourselves to close 30% of the long trade at market price and shift the protective stop to the entry. The trade alert is now open for all traders and not exclusively for traders that have subscribed to the global trade alerts package in light of recent profit.

GBPCAD Weekly Chart, 8 April, 2015
GBPCAD Weekly Chart, 08/04/15

GBPCAD Weekly Chart, 08/04/15

20/04/15 UPDATE: With a delay, GBPCAD triggered our protective stop at the entry but we were able to realize a decent profit over the long trade.

As GBPCAD trade is closed it can  now be accessed by all traders. Open trades are restricted to members only. We have been proving trade alerts in the spot Forex market since May 2014. Sign up for one of our plans and review our documented trades performance.
GBPCAD: Following the Broader Outlook

GBPCAD: Following the Broader Outlook
                                             GBPCAD: Following the Broader Outlook
GBPCAD: Following the Broader Outlook
                                         GBPCAD: Following the Broader Outlook
GBPCAD: Following the Broader Outlook


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