This trade was taken on Wednesday based on pin bar setup near 1.92 and we took profit close to 1.95 with +280pips profit on Friday.
GBPCAD is currently still on its 5th wave, with 5th wave possibly ending when price reaches 1.955.
We detected a reversal signal with an upward trend line supporting price, hence we took a long position and closed it off on Friday for a +70pips profit.
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- Read our article on "The path of least resistance"
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We went long at 1.9232 after we noticed a bullish candlestick pattern close to support 1.92 level. However, 1.92 level was not strong, hence the level was breached.
Seeing that 4H GBPCAD broke above downward trend line, there seemed to be strength in this pair. In 30mins GBPCAD, a pin bar signal was identified, with price above and supported by downward trend line. We went long at 1.898, with a target at 1.9145, but price only went as high as 1.905, which is where FE 161.8 and FE100 of various Fibonacci expansions are located. Price moved against and stopped us out at breakeven. One thing to note is bearish engulfing pattern which we observed in 24h chart, hence take profit level must be reasonable.
Price broke above downward trend line with support at 1.895 and pin bar signal identified. We went long at 1.898 with stop loss 1.893, take profit 1.9145 and risk reward 4. Apart from GBPUSD, all other GBP pairs remain relatively weak. Price has moved in our favor and we have adjusted stop loss to breakeven.
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