GBP/CAD Trade

Shandy from Forex factory presented a  GBP/CAD setup, here is my take on the trade, The second candle wasn’t quite as large as I like to see but large enough. The hourly chart at first glance did not present horizontal support , however price was bouncing off a diagonal upwards trend-line of an upwards hourly wedge channel.  When the hourly candle closed back inside the wedge would have been a good time to place the trade.  Monthly resistance was up ahead and providing a good place to take profits.  Price moved 250 pips so with a 35 pip stop the reward would be 1-7.  I like to go for at least 1-8 but this is still a good trade. The other option is to hope price breaks through the monthly resistance without taking out the stop and let it run.

gbpcad

 

In answer to Shandy I am using the 29th as candle 3 see below, as I said candle 2 was smaller than I like to see.

gbpcad_002

5 comments for “GBP/CAD Trade

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