From Investor to Scalper – series of studies created in cooperation with broker BDSwiss, in which we take a financial instrument and the analysis includes a detailed look at the value from the monthly chart and ending with 5/15 minutes.
On the monthly time frame of GBPCAD we can see that from the very beginning of the year the market is moving down and only in May and July we saw gains. Currently we are approaching the important support level around 1.6400 coinciding with the line of the previous downtrend.
On the weekly chart we see the realization of Head and Shoulders pattern. In the second half of June a strong impetus to the downward broke the neck line around the level of 1.8233 and if the formation should be completed in 100%, the potential target for short positions appears to be on 1.5333.
On the daily chart we see that the market for more than three months moves in the consolidation which is a correction of the previous dynamic impulse downward due to the results of a referendum on Britain to leave the EU Member States. Given the a long lasting downward trend and the aforementioned Head and Shoulders formation, it seems that more probable is outbreak down and continuation of declines. What could argue for increases is similar to the GBPUSD non-closed price gap 1.7596 – 1.7717.
At the H1 chart we can see that for two days the market is in consolidation. After ongoing since yesterday evening falls, around 1.6745 support, appeared strong demand and we are now in the area of local resistance area. If bulls are strong enough to overcome the zone, then a strong bearish response could be expected in the area of downtrend line.
On the M15 graph , we are able to narrow the aforementioned zone of resistance to one particular level – 1.6825, which was prior to the time tested. The rejection of this zone could cause a drop in the area of yesterday’s and today’s lows and the 1.6745 support.
