Sophia Todorova has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.
The Gbpcad bounced off of the 1.6000 level which was tested last week during the period of widespread gbp weakness. 1.6000 also happens to be the support of a horizontal type trading range on the 4-hr and daily timeframes. The top of the range can be seen at 1.6350s. This resistance was once again confirmed by 4-hour tweezer tops that were formed through last night, and the subsequent follow-through bearish action during the early hours of London trading session. Although it might be a tad late to short at the current level, it could present good trading opportunities at the bottom of the range ( 1.6000), if the ranging conditions continue.
I will wait for the market to test 1.6000, and form a bullish reversal pattern on 1-4hr timeframes.
At this point, I’ll go long with the intention of scaling out of my position in thirds:
Profit Targets: 1.6100, 1.6190, 1.6300
My stop loss will be based on the low of the reversal bar.
Thank you. Lots of gratitude to all my regular readers, as well as everyone else 🙂
The Eurusd was not able to close back above mentioned resistance. See possible short target here: http://winnersedgetrading.com/eurusd-technical-trading-levels/
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When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions.
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