Hi Traders! GBPCAD bullish setup forming at the moment. A detailed analysis of this buy opportunity is as follows:
GBPCAD D1 Chart:
On the daily chart the price which is moving lower has created a special cycle, currently it looks like this special cycle has completed itself. We also have two false breaks with two bullish divergences that has formed which we may consider as evidences of bullish pressure. We may now start looking for more bullish evidences on lower timeframes in order to join the bulls.
GBPCAD H4 Chart:
On the H4 chart the price has created a bullish divergence with false break, we may consider these as evidences of bullish pressure. In addition to this the price has also positioned itself above the D1 100% fibo extension level, in other words trading above the critical level. We may now look for bullish setups with bullish evidences on lower timeframes in order to join the bulls.
GBPCAD H1 Chart:
On the H1 chart the price has currently broken above the most recent downtrend line we may consider this as an evidence of bullish pressure. We may now look for pullbacks and buys with more bullish evidences.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
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