Trading Forex and CFDs is risky

GBP Showing signs of life – GBPCAD & GBPCHF

Market Analysis
2016-10-21_16-55-17

GBPCAD, Daily               

Yesterday’s (October 20) close saw GBPCAD close at a week’s high following a reversal from below 1.5950 on Monday. Tuesday’s hammer candle and close over 1.6100 suggested that the short term floor may be in, sterling then picked up across most pairs yesterday. A LONG position was opened today at 1.6140 with a short term target 1 at 1.6300 and target 2 at the 23.6 Fibonacci level and 20 DMA at 1.6515. The Parabolic SAR remains negative and the higher timeframes are still in down trends so this position is against the prevailing trend.

2016-10-21_16-15-14

 

There are signs that that the relentless downward momentum and sentiment against sterling may at last be easing, at least in some currency crosses.  GBPCHF formed a tweezer bottom last week and has edged higher over the last six sessions. The break over 1.2100 has been held and yesterday’s hammer candle confirmed a LONG position today at 1.2131.  Target 1 is around the 14 Day ATR at 1.2268 and the 20 DMA, Target 2 is at the 50 DMA and the post Brexit 38.2 Fibonacci level at 1.2570.  This position is against the higher longer term weekly and monthly time frames, so the move up may be limited.

 

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register  the next webinar will start in:

Stuart Cowell

Market Analyst

HotForex

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.