Trade Ideas

GBPCAD Technical Analysis And Forecast

Hi Traders!  GBPCAD technical analysis and forecast is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. 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!

GBPCAD D1(Daily) Chart Analysis – Triangle Pattern, Key Support Zone

On the daily chart the price is moving inside a triangle pattern which started on 9th March 2021. The price which is moving inside this pattern has currently reached the bottom of it, created a false break of it and is moving higher. In addition to this while measuring the first wave using the Fibonacci expansion tool, we could see that the we have a key support zone that has formed by 100%(1.68509) Fibonacci expansion level and the bottom of the triangle pattern. The price which was moving lower, reached this zone, respected it and is currently bouncing higher from this zone. Until this key support zone holds my view remains bullish here and I expect the price to move higher further. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.

 

 

GBPCAD H4(4 Hours) Chart Analysis – Bullish Divergence, ADX Indicator

Looking at the H4 chart we have a bullish divergence that has formed between the first low that has formed on 4th May 2021 and the second low that has formed on 7th May 2021 based on the MACD indicator, which we may consider as evidence of bullish pressure. Also the ADX indicator gave a bullish signal at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as another evidence of bullish pressure. If we get a valid breakout above the high at 1.71300 (marked in blue line) we may then consider it as a validation for the bullish view and may expect the price to move higher further.

Technical Analysis & Forecast Summary

GBPCAD D1(Daily) Chart Analysis 

  • Triangle Pattern, Key Support Zone

GBPCAD H4(4 Hours) Chart Analysis 

  • Bullish Divergence, ADX Indicator

Trading Tips

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.

Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.

You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.

Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?

I invite you to join us in our live market analysis, on daily basis, and improve your trading with us.

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Also, you can get one of our strategies free of charge. You will find all the details here

 

If you have any further questions, don’t hesitate to drop a comment below!

 

To your success,

Vladimir Ribakov
Certified Financial Technician

 

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Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.

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