GBP/USD: 3 sessions after a vain breach due to reversal candle on a daily graph, the pair started to decrease very sharply and intensively. Until now, a technical correction of exactly…
USD/CAD: The bullish power is strengthened by the long candle from two sessions ago. This candle reached the resistance zone around 1.0376 GBP.
GBP/USD
Daily graph: http://www.real-forex.com/charts-daily/211010/GBP_DAILY_211010.JPG
3 sessions after a vain breach due to reversal candle on a daily graph, the pair started to decrease very sharply and intensively. Until now, a technical correction of exactly 50% occurred. Since the different candles are very strong, the bearish trend should continue, creating opportunities for “Short” trades.
Our prognostics may be confirmed by the identification of a decreasing configuration on a one-hour graph.
Notification: If a hammer appears, it could be possible to start the transaction immediately but, it is always better being careful and wait for the configuration to occur.
Potential trade
One-hour Graph: http://www.real-forex.com/charts-daily/211010/GBP_1H_211010.JPG
The required configuration did not appear for the moment. If the resistance of 1.5881 is crossed upward, it could be better not to enter the transaction. Trade suggestion:
· The “Stop Loss” should be placed at 1.5881.
· “Limit Order” 10 pips below the closest support.
USD/CAD
Daily graph: http://www.real-forex.com/charts-daily/211010/CAD_DAILY_211010.JPG
The bullish power is strengthened by the long candle from two sessions ago. This candle reached the resistance zone around 1.0376 GBP.
33% of the uptrend started a few sessions ago has been corrected during yesterday’s session. This classical case of correction suggests a high probability for the preceding trend to be renewed. Therefore, our analysts estimate that the pair may reach the following resistance at 1.0513.
This estimation should be confirmed if an increasing configuration is created on a one-hour graph.
Have a profitable day!
