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As the week begins, we have a very early opportunity on GBPCAD. Below, we have shown you the weekly chart for GBPCAD. Last week, this pair hit the support at the bottom and then bounced quite well. This has led to the formation of a weekly pin bar (as you can see from the chart).
Like always, we will not enter a trade with just one signal. So, we look for further clues. We see that Oil has risen a lot and is now at a position where it will correct. This will, in turn, weaken the Canadian dollar. We also look around and find that EURGBP is ripe for a further correction (more on that separately). This shows that GBP will have strength this week. So GBPCAD basically is a picture of a strong currency against a weak one and this add value to our trade.
We also find that the top of the weekly bar is broken for GBPCAD and this further shows that the bar is valid. So, we have now entered a long with SL below the bottom of the weekly bar and we shall watch for further clues to manage the trade accordingly.
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