has dropped sharply during the past trading session and has formed a falling wedge
formation as visible in this H4 chart. The currency pair
currently trades at descending support
levels and we believe this pair will attempt a rally back into its descending resistance
level which is enforced by its 50 DMA
has formed a positive divergence
and indicates that selling pressure
does not confirm the lower low set by this pair. RSI
has been trading in extreme oversold
territory with initial signs of a breakout
. We expect a breakout to fuel the rally.
We recommend a long position
at 1.5310 which would be an addition the long position we took on February 13th at 1.5615. We also advice traders to place a stop sell
order at 1.5250.
Traders who wish to exit this trade at a loss are recommended to place their stop loss
order at 1.5250. We will not use a stop loss order for this forex pair
and execute the trade as recommended. Place your take profit
level at 1.5500.Here is why we believe the GBPACD currency pair will move higher
Open your PaxForex Trading Account now and add this trade to your portfolio.
- GBPCAD formed a falling wedge formation
- Currency pair trades at support
- MACD has formed positive divergence
- RSI trades in extreme oversold territory with initial signs for a breakout
- Short covering rally