GBP/CAD trap trade in progress

Nenad Kerkez Top-XE

GBP/CAD technical analysis

GBP/CAD trend should continue.
Yesterday’s candle low broke previous lows.
Pinbar rejection.
Trap trade.
1.5050 is intraday target.

MEGATREND MAs: Bearish

D1 chart GBP/CAD

1. Trendline touch.

2. Strong support at Q L4.

3. Trap entry.

4. Intraweek target.

5. Swing target.

The GBP/CAD is still bearish. Yesterday’s Bank of Canada decision was to hike 75 bps which was already discounted in price. However, the statement itself was hawkish as the BOC will continue to fight inflation strongly. That is a cue for further rate hikes and a sign of hawkishness.

The first entry I had was closed yesterday with +53 pips profit. Today the price retested the lower MA which called for another short entry as a trap trade. Ideal trap entry was at 1.5141. Keep in mind that yesterday's candle broke previous lows which is a sign of continuation. The intraday target is 1.5050 ( it’s almost a +100 pips intraday trade potential) with 1.4928 and 1.4676 as swing.

Author

Nenad Kerkez

Top-XE

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