GBPCAD tapped a major support/demand area at the price of 1.6600. Market bounced off this level and started creating a higher high and higher low. Another higher high Is in the process of being formed once the market forms another bullish leg upwards. This support acts as a strong catalyst in a way that it has multiple time frames factored in in one place as a support level.

The descending trendline has two pivot points which have been formed and is on the verge of being broken out for buys. Once the correct breakout buys have taken place and the market has validated the price action, only then we will be able to take the long position on the retracement. This breakout buy has already taken place but awaits the confirmation of the validation.

The golden retracement level falls on the support level with the confluence of 75-78.6% levels. This retracement will only be valid after the prices breakout from the trendline and then retraces back to the support level. We will avoid taking a direct entry after the trendline breakout buy.

Both the EMA’s are bearish with a bearish death cross. Given market has started to move up from a solid support level, we anticipate the breakout of the EMA 50 and continue tapping the EMA 200. EMA 200 will be our profit target for the long position.

Oscillators are above the neutralized levels, in the bullish region. The RSI being at 56 and CCI at 72. Given our position rests at the support level, we need a retracement on the oscillators as well. Either they dive in the bearish region, all the way towards the over sold region, or they continue hovering around the bullish neutralized levels. If the over sold region is reached, a bullish divergence will act as a push up factor.

GBP across the board seems bullish right now.

Another attempt on GBPCAD after breakout buys

Mar 22 2022

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