GBPCAD Pending Breakout Entry
Market Condition: Pending Breakout
Target 1: 2x ATR 1.9373
Target 2: 4x ATR 1.9013
Invalidation: Higher Highs over 2.0250
GBPCAD 1Day Chart
(Created using Marketscope 2.0 Charts)
The GBPCAD has declined as much as 1239 pips from the pairs 2015 high. Today, the pair is attempting to retrace from a new low found at 1.9733. This value is currently acting as support, and traders can use this value to pinpoint the pair’s next breakout. Current ATR measures 180 pips, and in the event of a lower low, traders can use this to identify potential trading targets. 2x ATR would place initial targets near 1.9373.
In the event that prices continue to retrace, this would at least temporarily stall any attempts at a bearish breakout. In this instance, if prices move back above 2.0250, a broader bullish retracement may be in play on the creation of a new higher high. At this point, entry orders to sell the GBPCAD can be deleted and traders can begin to look for other trend based trading opportunities.
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