GBP CAD Range Trade Potential Short Entry for W/C 3rd October 2011

GBP CAD Range Trade Potential Short Entry for W/C 3rd October 2011

GBP:CAD has traded a choppy range for over a year now bouncing between 1.5300 and 1.6400 giving regular bursts of up to 1000 point thrusts throughout this time.

We now have a situation where it’s back at the top of the range so we need to get clues on what the next move is. Historically you can see from the chart that the extensions to the limits of the range were not quite as powerful as this current move, furthermore, it can take days or even weeks to finally roll over at the limits of the range. So we could be slightly premature in hoping for a trade as early as this week, but it’s certainly one to be aware of.

Signs I will look for before entering a short position will be a number of tests and daily Doji’s around the top of the range, by which time the 4 hourly 200MA will have caught up with price, and confirmation of the entry will most likely be a break back below the 4 hourly 200MA.

Of course, there is potential that price could break out to the upside, in which case to trade it safely with a long position we’d need to see a confirmed breakout followed be a dip back to properly re-test the top of the current range. If solid support is offered, we could then enter a long position, if support fails, we switch back to the short idea.

For now, keep it on the back burner because one thing is for sure, there is a good trade in here somewhere and we just need to let the market show us it’s hand before making a decision to enter either long or short.

20 Comments
  • joe shark
    Posted at 19:56h, 03 October

    short 6251

  • RS2OOO
    Posted at 00:08h, 04 October

    There’s a gap at 1.6369 from Sunday night’s open.

    I’d like to see that filled before committing short.

  • joe shark
    Posted at 21:21h, 04 October

    gap got filled good call still short here looking for gap at 5833 at least

  • joe shark
    Posted at 21:22h, 04 October

    omg theres an avert on the right for mature dating uk…they are following me!

    i only checked the site out once i promise

  • RS2OOO
    Posted at 21:33h, 04 October

    Yep, they are following you, cos I don’t get them…. unfortunately.

    GBP:CAD….. Wondering if it’s a 2B top….need to have a closer look:

    http://www.indexswingtrading.com/aud/weekend-analysis-for-wc-12th-sept-2011-aud-cad-2b-top-possibility

  • RS2OOO
    Posted at 21:40h, 04 October

    Trying a short at 1.6333

    No idea if it’s a keeper….. just gonna see what happens over the next couple of hours.

    Current 4 hourly candle found support on the 20 MA, so a little nervous right now.

  • joe shark
    Posted at 22:50h, 04 October

    looks ok to me

  • RS2OOO
    Posted at 16:23h, 05 October

    Closed half of last night’s GBP:CAD short at 1.6178 for +155 points as there might be support around here.

    This covers the stop loss value on the 2nd half which I’ll now leave to run.

  • RS2OOO
    Posted at 19:06h, 05 October

    Go for it mate, that’s what I say……if she’s your cup of tea!

    Didn’t realise it was you moony! I like your blog, and that other one by kate in your blog roll.

    Now I know it’s you, I gotta ask, why were you asking for my opinion on GBP:CAD on ADVFN last night when we were both already short?

  • RS2OOO
    Posted at 19:08h, 05 October

    By the way, she aint wife material…. look at the state of the bedroom…. drawers open, clutter everywhere…

  • joe shark
    Posted at 11:45h, 06 October

    lo i wasnt looking for a wife…i was havin a laff shes a bit of a dog..i think i asked which of the three you thought was best ive got a eur/aus short as well

    • joe shark
      Posted at 21:06h, 24 October

      STILL SHORT EUR/AUD 600 UP

      • RS2OOO
        Posted at 23:14h, 24 October

        Move’s fast doesn’t it!

  • joe shark
    Posted at 11:49h, 06 October

    yeh the sharksite is by me and kates boyfriend they do the site i just spot some stories for them

  • joe shark
    Posted at 11:49h, 06 October
  • RS2OOO
    Posted at 13:28h, 06 October

    I think she likes Cruises mate, and she’s looking for a friendship that might turn into a long term partnership.

    If that’s not what you want, don’t waste her time and just go for the easy looking one!

    Anyway…. couldn’t resist closing the 2nd half of GBP:CAD short today. To have 417 pips profit within 36 hours of entering the position is too much for me to ignore, so I banked it.

    GBP:NZD was another stunner, but without me on board unfortunately as I missed the entry.

    GBP:USD looking a bit iffy….still waiting for the right moment to take an entry, but it doesn’t look pretty for longs right now so might leave it alone for a bit longer.

  • joe shark
    Posted at 13:46h, 06 October

    I cant post chart on here can i?

    ill post it on fx thread my chart shows a gap at 5835…i dont fancy cable long now..i was reading john maudlin he thinks its going to parity !

  • RS2OOO
    Posted at 21:08h, 06 October

    You can post charts but the image size has to be 550 x 317 to fit perfectly in the comments box, otherwise you only see half of it.

  • This Weeks Swing Trading Round-Up
    Posted at 00:45h, 08 October

    […] took the GBP:CAD range trade short as planned and the trade worked so well that on seeing 417 points profit in under 36 hours I just […]