Forex Market 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, Parabolic Sar, Stochastic Oscillator

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.

 

 

GBPCAD H4(4 Hours) Chart Analysis – Bullish Convergence, Range

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.

Technical Analysis & Forecast Summary

GBPCAD D1(Daily) Chart Analysis 

  • Triangle Pattern, Parabolic Sar, Stochastic Oscillator

GBPCAD H4(4 Hours) Chart Analysis 

  • Bullish Convergence, Range

 

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.

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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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