News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
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
Wall Street
Bearish
Gold
Bullish
GBP/USD
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
USD/JPY
Bearish
More View more
Real Time News
  • Singapore non-oil exports (NODX) in Dec surged 6.8% YoY, reversing a two-month decline and smashing a 0.3% forecast.
  • Alberta Premier Kenny says concerned about report that the incoming Biden administration may repeal presidential permit for Keystone XL border crossing next week https://t.co/dz8tKfMHHh
  • $CAD soft early on as President-Elect Joe Biden is reportedly planning to cancel the Keystone XL pipeline permit via executive action on his 1st day in office
  • Wall Street Futures Update: Dow Jones (-0.11%) S&P 500 (-0.233%) Nasdaq 100 (-0.299%) [delayed] -BBG
  • This week ahead, around 9% of the S&P 500 companies will release their results, including BoA, Goldman Sachs, Netflix, P&G, Morgan Stanley, IBM and Intel. So far in the earnings season, 85% of the S&P 500 companies have beaten forecasts. Read more: https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/01/17/Dow-Nasdaq-SP-500-Outlook-Earnings-May-Bring-Positive-Surprises.html
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/5rPIUGEiim
  • The S&P 500 continues to trend higher within the confines of an upward channel, and as long as it stays above the lower parallel of the pattern then it remains positioned for higher prices. Get your market update from @PaulRobinsonFX here: https://t.co/UTMZe8jhEF https://t.co/gAzO9hufEi
  • China 4Q GDP is expected to register an annualized growth rate of 6.1%, marking a robust recovery from the Covid-19 pandemic. Look ahead, China’s economic growth may accelerate further to 8-9% in 2021 partly due to a lower base in 2020. https://t.co/RO7s7Mqj2p
  • 5 out of 9 Dow Jones sectors ended lower, with 90% of the index’s constituents closed in the red. Energy (-3.56%), industrials (-1.18%) and consumer staples (-0.41%) were among the worst performers, whereas communication services (+0.15%) and healthcare (+0.10%) outperformed. https://t.co/FiiOpNACyU
  • The Dollar’s first major counteroffensive since September takes the index more than 1.6% off the monthly low. Here are the levels that matter on the DXY technical chart. Get your market update from @MBForex here: https://t.co/hVshzMbc31 https://t.co/7oZkhDSray
Gartley-Validated Intraday Set-up in GBP/CAD

Gartley-Validated Intraday Set-up in GBP/CAD

2014-01-16 19:30:00
Kaye Lee, Head Forex Trading Instructor

Talking Points:

  • Consolidation Pattern on GBP/CAD Daily Chart
  • Favorable Risk/Reward Profile
  • Gartley Pattern Helps Validate the Trade

The usual procedure for trading trends is to wait for a legitimate pullback in an uptrend or downtrend, and there is a definite uptrend on the below daily chart of GBPCAD that is only just beginning to pull back.

Guest Commentary: Pullback in an Overall GBP/CAD Uptrend

Gartley-Validated_Intraday_Set-up_in_GBPCAD_body_GuestCommentary_KayeLee_January16A_1.png, Gartley-Validated Intraday Set-up in GBP/CAD

There are pros and cons to taking this trade when viewed from the higher time frames. The definite con is that price has largely moved sideways and hasn’t really given sufficient room for a trade, which suggests that in order to make for suitable risk/reward profile, a much lower time frame is needed.

However, this recent consolidation suggests that a battle between bulls and bears is happening on the lower time frames, and that may well provide enough of a range to justify a low-risk trade.

The four-hour chart below provides a better picture of the range, which appears to be steady and tradable. Even if price only rises to the top of the range, there are approximately 195 pips between the current price and overhead resistance.

Guest Commentary: 4-Hour Range in GBP/CAD

Gartley-Validated_Intraday_Set-up_in_GBPCAD_body_GuestCommentary_KayeLee_January16A_2.png, Gartley-Validated Intraday Set-up in GBP/CAD

On the downside, the support region is about 60 pips wide. This makes for attractive risk/reward, especially when considering that the uptrend on the higher time frames could resume as well.

The hourly chart below shows a harmonic pattern that lends credence to this trade, the Gartley pattern. (The rules for trading Gartley patterns were described in a previous article.)

See also: A Credible Gartley Pattern in EUR/GBP

Although price has come very close to touching the 78.6% retracement level, it’s important to be strict with regard to support levels. This retracement level will only become tradable once price has actually touched it. Thus, the support zone emerges as 1.7768-1.7826.

Guest Commentary: Gartley Pattern on GBP/CAD Hourly Chart

Gartley-Validated_Intraday_Set-up_in_GBPCAD_body_GuestCommentary_KayeLee_January16A_3.png, Gartley-Validated Intraday Set-up in GBP/CAD

Nonetheless, some traders may choose to be aggressive and use pin bars, bullish engulfing patterns, and/or bullish reversal divergence on the 15-minute chart as trade triggers.

As always, two or three tries may be needed to get in on this trend. The decision to wait for the support zone to be validated may result in missing this trade, but experience suggests this is unlikely.

An examination of the 61.8% level shows that it was slightly breached, and often, this also means that a breach of the 78.6% level will occur before price turns around.

By Kaye Lee, private fund trader and head trader consultant, StraightTalkTrading.com

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

DISCLOSURES