GBP/CAD 23.08.2016
H4 chart.
Continues downtrend ending with trend reversal formation Head and Shoulders, as neckline is broken and tested.
Price in upward price channel above supports.
Technical indicators:
Price above EMA50 - positive.
CCI(50) in overbought zone above 100 - probable correction.
Sentiment: Decrease in oil prices and speculations for fail of oil production freeze at September OPEC meeting are negative for CAD. On the other side GBP is supported by latest releases of economic data which are above expectations.
Entry after correction to diagonal and horizontal supports and Fibonacci level 23,6 1.6923
SL: 1.6835
Alternative scenario: Break below the diagonal support will activate a flag formation for probable downward impulse.
Jr. Trader Nikolay Georgiev
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