Analysis
-GBPCAD looking bearish after showing signs of reversal after buyers pushed price up into resistance where sellers stepped in and pushed price down before the 4H candle close.
-The price action resulted in a 4H pinbar setup AT RESISTANCE which is a bearish sign. If price breaks the lows of the pinbar, sellers may push price down further.
-There is also RSI divergence on lower time frames further indicating that we may be headed lower.
Entry, Stops and Targets
-Short Entry: 1.7135
-Stop Loss: 1.7166 (Set stop above the high of the reversal candle with some buffer)
-Take Profit: 1.7073 (Set target 2 times your stop depending on entry)
*Always practice good risk management and risk a maximum of 1% to 2% of your capital on any given trade.
-GBPCAD looking bearish after showing signs of reversal after buyers pushed price up into resistance where sellers stepped in and pushed price down before the 4H candle close.
-The price action resulted in a 4H pinbar setup AT RESISTANCE which is a bearish sign. If price breaks the lows of the pinbar, sellers may push price down further.
-There is also RSI divergence on lower time frames further indicating that we may be headed lower.
Entry, Stops and Targets
-Short Entry: 1.7135
-Stop Loss: 1.7166 (Set stop above the high of the reversal candle with some buffer)
-Take Profit: 1.7073 (Set target 2 times your stop depending on entry)
*Always practice good risk management and risk a maximum of 1% to 2% of your capital on any given trade.