GBP/CAD Daily Price Forecast – 5th March 2025

GBP/CAD Daily Price Forecast – 5th March 2025

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Trade Summary:

GBPCAD
Buy Stop @ 1.84581
TP @ 1.85164
SL @ 1.83241

GBPCAD Analysis (H4 Timeframe)

Overview

The chart provided shows a bullish trend for GBPCAD on the H4 timeframe, supported by the following indicators and levels:

• Momentum Power: The momentum indicator shows a positive value, suggesting strong bullish momentum.

• Key Levels:

  • Buy Stop: 1.84581

  • Take Profit (TP): 1.85164

  • Stop Loss (SL): 1.83241

• Moving Averages: The chart includes multiple moving averages (likely short, medium, and long-term), all sloping upwards, confirming the bullish trend.

Key Observations

• Trend Analysis:

  • The price is in a clear uptrend, as evidenced by higher highs and higher lows.

  • The moving averages are aligned in a bullish configuration, with shorter-term averages above longer-term ones.

• Momentum Confirmation:

  • The momentum indicator confirms the trade setup, indicating that the bullish move is supported by strong market activity.

  • The price is close to the round level of 1.84600, which acts as a psychological resistance. A breakout above this level is expected to trigger the Buy Stop order.

• Candlestick Confirmation:

  • The chart suggests waiting for candlestick confirmation before entering the trade. This ensures that the breakout above 1.84581 is valid and not a false move.

• Risk-Reward Ratio:

  • The Stop Loss is set at 1.83241, which is approximately 134 pips below the Buy Stop level.

  • The Take Profit is set at 1.85164, which is approximately 58 pips above the Buy Stop level.

  • The risk-reward ratio is less than 1:1, which may not be ideal for some traders. Adjustments to the TP or SL may be considered to improve the ratio.

• Support and Resistance:

  • Support: The 1.83241 level serves as a strong support, as it is the SL level and aligns with previous price action.

  • Resistance: The 1.85164 level is the immediate resistance and the TP target.

Trade Setup

• Entry: Place a Buy Stop order at 1.84581, ensuring the price breaks above the resistance level with confirmation.

• Stop Loss: Set at 1.83241 to protect against downside risk.

• Take Profit: Set at 1.85164 to capitalize on the bullish move.

Potential Scenarios

• Bullish Breakout:

  • If the price breaks above 1.84581 with strong momentum and candlestick confirmation, the trade is likely to hit the TP at 1.85164.

• Rejection at Resistance:

  • If the price fails to break above 1.84581, it may retrace towards the support level at 1.83241 or lower.

• Consolidation:

  • The price may consolidate between 1.84581 and 1.83241 before making a decisive move.

Recommendations

• Risk Management: Ensure proper position sizing to manage risk, as the risk-reward ratio is less than ideal.

• Monitor Momentum: Keep an eye on the momentum indicator for any signs of weakening bullish strength.

• Adjust TP/SL: Consider adjusting the TP or SL levels to improve the risk-reward ratio if market conditions change.

Conclusion

The GBPCAD pair is in a strong bullish trend, with a potential breakout above 1.84581. The trade setup aligns with the momentum and trend, but traders should wait for candlestick confirmation before entering. Proper risk management and monitoring of key levels are essential for successful execution.

Trading is all about statistics.

While we can experience winning streaks, we can also suffer from losing streaks.

As such, we should always size each trade to withstand losing streaks (if any).

It’s widely recommended that you should not risk more than 2% of your capital for each trade.

We believe it’s easier to control your lot size by limiting your lot sizing to 0.01 for every $500 in your account.

So if you have $5000, then risk no more than 0.10 lot size per trade.

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If you spot a mistake especially when it comes to the price, please use common sense and check the chart.

We wish you good luck and good profit for this trade idea.

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