GBPCAD: A potential MARKET REVERSAL
Hello, everybody and welcome to Cybernetics Trading Lab, today we are going to analyse the GBPCAD, translating the market information by using a full technical analysis on different time frames, giving you a personal opinion about the next most likely market movement and helping you to spot and manage market opportunities.[/I]
Top Down Technical Analysis:
In our previous forecast, we were looking for a long entry considering the overall bullish price action after a strong sharp impulse lasted for more than 1000 pip.
The price then reached its previous swing high, reversing and continuing to the downside.
In HTF we can see a double top and a rising wedge, which together usually are a potential reversal pattern, because most of the time it reflexes a market condition of weakness.
In LTF as well, few LTF confluences are forming as a bearish impulse and a little head and shoulders on the top of the structure.
When, where and why would we step into the market?
The current market condition looks very interesting for a short position! Before entering the market we would be waiting for a correction after the breakout of the main structure (which is happened just a couple of trading sessions ago!)
The main reason to be waiting for this confirmation is related on the fact the after a strong impulse, usually the market needs a breath, correcting and retracing.
The market, as well, could just continuing dropping or potentially reverse without giving clues! In this scenario the trading idea will be invalidate and no action will be taken on this market!
If you enjoy this trade idea, please support our work with a thumb up and don’t forget to follow our social medias!
Sincerely,
Cybernetics Trading Lab
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose.[/I]
Top Down Technical Analysis:
In our previous forecast, we were looking for a long entry considering the overall bullish price action after a strong sharp impulse lasted for more than 1000 pip.
The price then reached its previous swing high, reversing and continuing to the downside.
In HTF we can see a double top and a rising wedge, which together usually are a potential reversal pattern, because most of the time it reflexes a market condition of weakness.
In LTF as well, few LTF confluences are forming as a bearish impulse and a little head and shoulders on the top of the structure.
When, where and why would we step into the market?
The current market condition looks very interesting for a short position! Before entering the market we would be waiting for a correction after the breakout of the main structure (which is happened just a couple of trading sessions ago!)
The main reason to be waiting for this confirmation is related on the fact the after a strong impulse, usually the market needs a breath, correcting and retracing.
The market, as well, could just continuing dropping or potentially reverse without giving clues! In this scenario the trading idea will be invalidate and no action will be taken on this market!
If you enjoy this trade idea, please support our work with a thumb up and don’t forget to follow our social medias!
Sincerely,
Cybernetics Trading Lab
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose.[/I]
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