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!
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, respected it and is bouncing higher. In addition to this, based on the Parabolic Sar we could see that the dots are below the price which we may consider as evidence of bullish pressure. Also based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as another evidence of bullish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
On the H4 chart we have a bullish divergence that has formed between the first low that has formed at 1.69579 and the second low that has formed at 1.68708 based on the MACD indicator. Then the price moved higher and broke above the high at 1.71300 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Currently it looks like a flat correction is happening in the form of a range. The price which is moving inside this range is currently nearing the bottom of it. Until the bottom of this range holds, my view remains bullish here and I expect the price to move higher further.
GBPCAD D1(Daily) Chart Analysis
GBPCAD H4(4 Hours) Chart Analysis
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.
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To your success,
Vladimir Ribakov
Certified Financial Technician
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