GBPCAD Sell @ Market 1.6730
Updated
We're short GBP/CAD following a break of Thursday’s low.
GBP is the weakest major this month and CAD is the second strongest, making GBP/CAD a desirable pair to short.
The daily chart shows price action has been trading within a tight bearish channel since the June high. Furthermore, the channel is accelerating away from a longer-term trendline to show bearish momentum is increasing. Friday produced its smallest range over a four- session period to show compression was underway.
Zooming into the one-hour chart, we can see momentum late on Friday had realigned with the dominant bearish trend and prices gapped lower over the weekend to see a break of Thursday’s low.
GBP is the weakest major this month and CAD is the second strongest, making GBP/CAD a desirable pair to short.
The daily chart shows price action has been trading within a tight bearish channel since the June high. Furthermore, the channel is accelerating away from a longer-term trendline to show bearish momentum is increasing. Friday produced its smallest range over a four- session period to show compression was underway.
Zooming into the one-hour chart, we can see momentum late on Friday had realigned with the dominant bearish trend and prices gapped lower over the weekend to see a break of Thursday’s low.
Trade active
Stops 1.6823Tp 1.6403
Trade closed manually
GBP/CAD has broken down as predicted. However, our short has come up agaisnt long-term support around this year's and month's low.Short-term, momentum looks bullish so we are banking a profit on the trade.
1.66597
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