11 Mar GBP CAD Long Term Range Support Tested; 12th March 2013
Presented with little commentary are these GBP:CAD charts showing price testing the bottom of its 3 Year trading range.
I’ve been wrong on this pair before, so I’m not going to say “buy it” because this time could be different, and there’s nothing on the chart convincing me that this support will hold. In fact, indications point to a large sell off if this breaks down…. But you need to make the call!
Daily chart showing the last 3 years trading range:
Weekly chart showing further back in time for additional clarity:
Yes, a Break down does seem the most likely scenario here, but I do remember looking for a break out when price was at the top of the range in 2011, so who knows what might happen!
If I do decide to trade a break down, I’ll post the details in the comments section below this post. A more sensible option might be to wait for a break down ahead of shorting a retest of the 3 Year trading range, i.e A “Box Trade”.
Whilst I’m typing, here’s some other stuff I like and will provide further analysis if I decide to trade any of them:
AUD:USD for a long
GBP:NZD for a short targeting 1.7100 to collect 1000 pips.
GBP:USD for a short targeting 1.4710 to collect 200 pips.
EUR:NZD for a long
AUD:NZD for a long