Hi Traders! GBPCAD forecast follow up and update is here. On January 6th I shared this “GBPCAD Buy Idea Based on Key Support Zones” post in trading view. 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
GBPCAD H4(4 Hours) Chart Current Scenario
On the H4 chart, the price action followed my analysis and moved as per the plan. The price which was moving lower respected the first key support zone and bounced higher from this zone. We also had a bullish divergence in play based on the MACD indicator, the price then moved higher further as I expected, delivering 180+ pips move so far.
On the H1 chart, the market provided us with various facts supporting the bullish view. We had a bullish divergence that has formed between the first low that has formed on 4th January 2021 and the second low that has formed on 8th January 2021 based on the MACD indicator. The price then moved higher and broke above the most recent downtrend line. We may consider these as facts provided by the market supporting the bullish view and most importantly there were no opposite evidences. The price then moved higher further providing a fantastic move to the upside.
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
