In the daily time frame chart below, GBPCAD has broke the bearish lower low lower high sequence and can be setting up for another round higher. There are possible demand zones/buy zones where buyers can be waiting to push the pair higher.
GBPCAD Daily Chart June 26 2022
The 4 hour chart also shows the same break of the bearish lower low lower high (LL LH) sequence signalling that another push higher can be expected. If looking to trade GBPCAD, traders should be patient and wait to see if price extends lower to the demand/buy zones before squeezing the buy trigger. Waiting for price to dip lower will also give a better risk to reward trade setup. Traders should also switch to lower time frames like the 15 Minute or 5 Minute charts to refine a better entry and tighter stop loss. Price should stay above the June 14 2022 low and not break below this level. Traders can also use the June 14 2022 low as a stop loss if can’t find a tighter stop.
GBPCAD 4 Hour Chart June 26 202
A trader should always have multiple strategies all lined up before entering a trade. Never trade off one simple strategy. When multiple strategies all line up it allows a trader to see a clearer trade setup. We at EWF never say we are always right. No market service provider can forecast markets with 100% accuracy. Only thing we at EWF 100%, is that we are RIGHT more than we are WRONG.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
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