Hi Traders! GBPCAD forecast follow up and update is here. On December 10th I shared this “GBPCAD Forecast And Technical Analysis” post in my blog. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
My Idea
“Looking at the H1 chart we could see that the correction happened in the form of double wave to the upside with the price creating a bearish divergence between the first high that has formed at 1.71656 and the second high that has formed at 1.72216 based on the MACD indicator which we may consider as evidence of bearish pressure. Currently the price which is moving lower has broken below the most recent uptrend line which we may consider as another evidence of bearish pressure. So based on all this my view remains bearish here and I expect the price to continue lower further”.
GBPCAD H1(1 Hour) Chart Current Scenario
On the H1 chart after the breakout of the most recent uptrend line, I was expecting the price to continue lower further. The price action followed my analysis exactly as I expected it to and moved lower further delivering around 280 pips move until it was blocked by a bullish divergence.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
The market provided us with various facts supporting the bearish view here. On the H4 chart the price had created a bearish trend pattern and the price which was moving inside a range has broken below the bottom of it. We then had a pullback in the form of double wave to the upside. Also on the H1 chart we had a bearish divergence between these two waves and then the price moved lower and broke below the most recent uptrend line. We may consider all these as facts provided by the market supporting the bearish view, also there were no signs opposing this bearish view. Then as you can see in the screenshot above how the price moved lower and provided a fantastic move to the downside until it was blocked by a bullish divergence.
As traders we always have two choices, the first one is to fall in love with our analysis and try to convince the market and expect the price to move in the direction as per our wish. The second one is to follow the facts that the market provides us and make the right actions according to that. As you know the first option won’t help us and as you can see in the example above what happened when we followed the facts that the market hinted us and took the right action according to that.
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To your success,
Vladimir Ribakov
Certified Financial Technician
thank you sir