GBPCAD has been on a strong bull trend on the 4HR chart. Having made a double bottom, the produced a huge engulfing 4HR candle. In fact, that candle has set the tone. The trend seems strong still and has the potential to go further up. Let us find out what the potential move would look like and how we would ride on the trend.
Have a look at the 4H GBPCAD chart.
The support line of the double bottom is an up trending Trend line. Then, the pair produced the huge engulfing candle and continued to go up for 2 more candles. Having corrections for some candles, the price has continued to go up and kept making higher high. The price went up to 1.66150 yesterday. Now the price is having correction. The level of 1.65100 might act like the support. If it really does, then we should wait for a 4HR reversal candle on the support zone and a breakout at the level of 1.66150 to go long on the pair.
Let us have a look at the summary of the trade
- Buy Stop Order: 1.66150
- Stop loss: 1.65100
- Take Profit Target: 1.69475
On today’s chart 1.65100 should act as the support zone. There is a difference between support zone and support line. When price produces the reversal candle and a trending candle after that, we can determine the line. On the other hand, if we wait for the price to make corrections and the reversal candle, then we have to assume the support zone. Support zone could produce a reversal candle from bit further up or down. Here is a thing though, if a reversal candle is produced from too far up or down, then we might as well not consider that as our reversal candle that we wait for.
Comment below if you have questions on this trade and please let us know if you made money if this trade signal. Good luck!
You can also take a look at our previous (and most likely profitable) Free Forex Trading Signals Here.
We hope that you enjoy our Free Forex Trading Signal today: GBPCAD Free Forex Trading Signals – 24th Jan 2017
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