Dmitriy Chernovolov, Technical Analyst who has been actively following the FX markets for the last 11 years. He uses a systematic trend following approach combined with a proven money management system. Dima prefers to combine multiple technical analysis tools (e.g. Fibonacci retracements, trendlines, indicator divergences, Japanese candlesticks, Elliott Waves as well as horizontal support and resistance levels on different time-frame charts) to identify high probability synergetic trade setups with a high reward/risk ratio.

GBP/CAD: sell target - 2.0360

By: Dmitriy Chernovolov

  • GBP/CAD reversed from resistance zone
  • Next sell target - 2.0360

GBP/CAD recently reversed down strongly from the major resistance zone lying between the resistance levels 2.1000 and 2.0800 (this resistance area earlier reversed the previous sharp impulse waves (1) in August and 1 in December, as can be seen below). This resistance zone was strengthened by the upper daily Bollinger Band. The downward reversal from this resistance zone created the daily Japanese candlesticks reversal pattern Falling Star.

With the clear bearish divergence visible on the daily Momentum indicator - GBP/CAD is likely to fall further in the active minor corrective wave (ii) toward the next sell target at the support level 2.0360 (low of previous wave 2).

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