{"id":90156,"date":"2016-05-23T06:57:05","date_gmt":"2016-05-23T10:57:05","guid":{"rendered":"http:\/\/countingpips.com\/?p=90156"},"modified":"2016-05-23T06:57:05","modified_gmt":"2016-05-23T10:57:05","slug":"short-term-trading-idea-gbpcad-bull-speculation-expected-1-92-break","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/05\/short-term-trading-idea-gbpcad-bull-speculation-expected-1-92-break\/","title":{"rendered":"Short-term Trading Idea: GBP\/CAD \u2013 Bull Speculation: Expected 1.92 Break"},"content":{"rendered":"
May 23, 2016<\/div>
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By Vladislav Antonov, Alpari<\/b><\/p>\n

Trading opportunities for currency pair:<\/em><\/strong> the GBP\/CAD has an inverted cup with handle pattern forming on it. After a fall in the rate to 1.8855, a strengthening of the pound to 1.9640 is expected. Growth of the GBP\/CAD will be stamped out by a break in the trend line.<\/em><\/p>\n

Background<\/em><\/strong><\/p>\n

The last GBP\/CAD idea I had came out on 8th<\/sup> February<\/a>. When it was published, the pound was trading at around 2.0178 Canadian dollars. After two pinbars and a double bottom formed, a growth to 2.0325 and 2.0550 was expected.<\/p>\n

The idea didn”t come off. Even when Brent dropped to $29.89, the GBP\/CAD rose only to 2.0289. Another 36 points remained “til the first target. By not breaking the 2.0325 resistance, the GBP\/CAD dropped to 1.8280 by 21\/04\/16 due to Brent rising to $46.16 per barrel.<\/p>\n

Current Situation<\/em><\/strong><\/p>

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This week I have chosen a currency pair which is dependent on oil prices. Bear in mind that the GBP\/CAD has restored from a 1.8280 minimum by 927 points during the phases when oil was falling.<\/p>\n

On Wednesday the GBP broke the 1.9161 resistance after the publication of new survey data regarding the Brexit. The number of Brits who want to remain is 55%.<\/p>\n

On Thursday the pound continued to strengthen due to UK stats. Retail sales in April were up 1.3% MoM after a March fall of 0.5% and this was 0.5% higher than forecasted. The previous value was reassessed from -1.3%. Sales were up 4.3% YoY and March”s data was reassessed upwards from 2.7% to 3.0%.<\/p>\n

I”ve highlighted two cups with handles on the daily graph. Since the small one has already formed, you should see what I expect from the bigger one. As soon as the handle is formed, expect the rate to break 1.92.<\/p>\n

The GBP\/CAD corrected to 1.9009 on Friday. The weakening of the pound was caused by a technical correction after its rally on Wednesday and Thursday. Friday”s candle”s body closed off that of Thursday. This is a bearish signal. During the formation of the handle we can expect to see a fall of the rate to 1.8855 with a subsequent growth to 1.9640. Growth of the GBP\/CAD will be stamped out by a break in the trend line.<\/p>\n

Between the GBP\/CAD and NZD\/CAD there is no constant daily correlation, so don”t pay attention to how the NZD\/CAD could depart upwards first.<\/p>\n

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Article submitted by Alpari.com<\/a><\/p>\n

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By Vladislav Antonov, Alpari Trading opportunities for currency pair: the GBP\/CAD has an inverted cup with handle pattern forming on it. After a fall in the rate to 1.8855, a strengthening of the pound to 1.9640 is expected. Growth of the GBP\/CAD will be stamped out by a break in the trend line. Background The […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-90156","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/90156","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=90156"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/90156\/revisions"}],"predecessor-version":[{"id":90175,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/90156\/revisions\/90175"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=90156"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=90156"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=90156"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}