We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
GBPCAD Testing Slope Resistance- Long Scalps at Risk Sub 1.84

GBPCAD Testing Slope Resistance- Long Scalps at Risk Sub 1.84

2015-04-21 20:07:00
Michael Boutros, Strategist
Share:

Talking Points

  • GBPCAD testing multi-month slope resistance
  • Breach needed to keep long bias in play
  • Key support at monthly low / 2015 open (1.8087)

GBP/CAD Daily

GBPCAD Testing Slope Resistance- Long Scalps at Risk Sub 1.84

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • GBPCAD testing slope resistance- possible near-term inflection point
  • Key resistance 1.8476/80- backed by the February ML,1.8685 & 1.8850
  • Key support 1.8146, 1.8087– bullish invalidation
  • Daily RSI resistance trigger pending- breach would constructive (post 40-hold)
  • Event Risk Ahead: BoE Minutes tomorrow, UK Retail Sales on Thursday & US Durable Goods Orders on Friday

GBP/CAD 30min

GBPCAD Testing Slope Resistance- Long Scalps at Risk Sub 1.84

Notes:The GBPCAD has come into resistance at a slope inflection zone we’ve been tracking since March after rebounding off the 78.5% retracement of the 2015 range. Note that although the weekly OR looks to have broken to the topside, the focus remains on the highlighted region just below the 1.84-handle with a breach above keeping the long bias in play targeting more significant resistance at 1.8476/80. This region is defined by the March swing low and a basic 23.6% retracement of the decline off the February high.

Bottom line: our immediate play looks for short-triggers below this region with our base case scenario targeting one more low in the pair before reversing higher (near 1.8087?). A breach above 1.8480 targets the median-line extending of (~8650) & the April highs. A quarter of the daily ATR yields profit targets of 42-44pips per scalp. Unless the BoE minutes reveal a growing decent within the committee, another unanimous vote may do little to shake up the British Pound as the central bank retains a wait-and-see approach ahead of the May 7 election.

* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.

Relevant Data Releases

GBPCAD Testing Slope Resistance- Long Scalps at Risk Sub 1.84

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

For updates on this scalp and more setups follow him on Twitter @MBForex

To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFXat 12:30 GMT (8:30ET)

Interested in learning about Fibonacci? Watch this Video

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.