GBPCAD, Daily
As we know Canadian dollar and WTI crude oil have an inverse relationship were CAD usually goes up if the price of oil appreciates and vice versa. The strong drop in the price of oil lifter GBPCAD higher and created a significant gap to the upside. Markets have however been selling the pair from the opening of trading in the Asian session and now with the oil price apparently finding some support it’s I’m looking at GBPCAD as a potential short play. Gaps are often closed before markets start to move again in the direction of the prevailing momentum. If crude oil (USOIL in MT4) continues to attract buyers and is likely to close the gap then it makes sense to expect GBPCAD to move in the opposite direction.
I’m looking for sell signals in GBPCAD a sell area between 1.8350 and 1.8380 with targets as follows. Target 1: 1.8276 – 1.8304 and Target 2: 1.8183 – 1.8230. If price moves to Target 2 we are interested in turning the position around and go long in the pair with an idea to take money off the table at 1.8304 (T1) and 1.8390 (T2).
Using strict risk management is recommendable as usual. If you don’t know how to manage your trading risks professionally you are welcome join to my free webinars to learn more.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
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