GBP/CAD technical analysis: Will the GBP/CAD quotes continue to grow?

Dmitry Lukashov IFC Markets

Recommendation for GBP/CAD: Buy

Buy Stop: Above 1,73

Stop Loss: Below 1,69

Indicator	Value	Signal
RSI		Neutral
MACD		Sell
MA(200)		Buy
Fractals		Neutral
Parabolic SAR		Buy
Bollinger Bands		Buy

Chart Analysis

On the daily timeframe, GBPCAD: D1 breached up the resistance line of the short-term downtrend, as well as the 200-day MA. A number of technical analysis indicators formed signals for further growth. We do not exclude a bullish move if GBPCAD rises above the last three upper fractals: 1.73. This level can be used as an entry point. We can set astop loss below the 200-day moving average line, Parabolic signal, lower Bollinger line and last lower fractal: 1.69. After opening a pending order, we move the stop loss following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the 4-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (1.69) without activating the order (1.73), it is recommended to delete the order: some internal changes in the market have not been taken into account.

Fundamental Analysis

Canadian statistics probably indicate a slowdown in economic recovery. Will the GBPCAD quotes continue to grow?

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

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