17 Sep GBP:CAD; Break-Out Or Resistance? 17th September 2013
Having briefly made 3 Year lows back in March (which I actually bought and got stopped out at the lowest pip), GBP:CAD has now broken 3 Year highs.
So the question needs to be asked; Are we about to see a huge rally or will resistance send the pair back into the long term trading range?
Having been wrong around 50% of the time on this pair I’m probably not qualified to answer, however I put the question to members of my ADVFN
forum where the majority believed price would sell off back into the long term range.
What’s your opinion?
Whichever way to trade this, stops for shorts should probably be on a Daily close above the recent new high, and the safest stops for longs should be somewhere below 1.6191 as defined as potential support on this 4 Hourly chart. A sell off below 1.6191 would also suggest the 200 MA has failed to offer support, adding weight to the potential of more range bound chop: