GBPCAD Analysis
1) Daily timeframe, three touches on down trend, price finding support.
2) RSI divergence on daily time frame ( pink line )
3) 4 hour time frame - double bottom has formed, price reacting off previous minor trend (blue line )
4) Price resting right on two key fib levels from the previous swing down and the recent swing high.
5) 1 hour time frame - Price appearing to retrace right between the 20 EMA and 200 MA.
6) Despite GBP news being bearish, history has shown a recovery in Retail Sales, so there is a potential bullish move here and CAD news is bearish on Friday, this is also a yellow folder so it won't bring a huge swing or anything but could support the move up.
7) Either price will break out and move to prior resistance at 1.62300 or fall to previous support at around 1.59000.
* When trading news it is best to wait for news to release and trade the retest. Trading a pair that has been ranging or in a choppy market or a pair with economic uncertainty tends to find itself back to where it started. Trade / Capture / Close
1) Daily timeframe, three touches on down trend, price finding support.
2) RSI divergence on daily time frame ( pink line )
3) 4 hour time frame - double bottom has formed, price reacting off previous minor trend (blue line )
4) Price resting right on two key fib levels from the previous swing down and the recent swing high.
5) 1 hour time frame - Price appearing to retrace right between the 20 EMA and 200 MA.
6) Despite GBP news being bearish, history has shown a recovery in Retail Sales, so there is a potential bullish move here and CAD news is bearish on Friday, this is also a yellow folder so it won't bring a huge swing or anything but could support the move up.
7) Either price will break out and move to prior resistance at 1.62300 or fall to previous support at around 1.59000.
* When trading news it is best to wait for news to release and trade the retest. Trading a pair that has been ranging or in a choppy market or a pair with economic uncertainty tends to find itself back to where it started. Trade / Capture / Close