Swing trade on GBP/CAD short.

Hi Fellow traders.  I am looking at a Daily double test high on the Pound Canada pair.  I am considering a short on it on an hourly sell bar and if you look at the hourly, you see a 5 day several hundred pip run.  If we draw our fibs and look at the levels….  This looks good for a potential run down on Pound weakness (already underway in Pound dollar) and potential Cad strength on tomorrows rate announcement for Canada  See the daily chart below:  Click the chart, it will blow up big for you, that is a data error by the way that always happens on cms vt trader when it puts in a daily bar right at the end of the day. Anyway,  if you look at this hourly chart you can see better the run up is getting tired.  We put in a daily piercing bar and after having a 600+ run the 38.2 % fib comes in around 1.5933 and the 50% fib at 1.5855 These are my targets. Here is the chart:

As usual keep your position size in check if you decide to take it and I am placing my stops right above the highs and above the daily 200 MA, just above the “psych” level of  1.6215  Thanks for reading and till next time, Happy trading.  Michael Storm aka robinhood.

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  • Anonymous

    Thanks for sharing this post. Its really impressive one.
    I found this blog full of knowledge and information which will help me to gather information and knowledge about forex trading and its aspects. I am new to this blog and follow it in future.

  • Robinhood777

    yes for sure. Once half the pay is locked the rest is free ride.

  • Robinhood777

    Hi, thanks for posting, hope you did well on it. You know I probably could have drawn from there, but I looked at that as the daily reversal bar and just wanted to be more conservative on the targets.

  • mihai o.

    Looks interesting, I think I'll take this hint. One question however, why u didn't trace fib from 1.5420 level?
    Thanks

  • Patricio Arellano

    Excellent post!!! When will you move sl? When the first target is reached?