Trade Ideas

GBP/CAD: Medium-term trade idea with good risk reward [The Carney Trade]

  • Monthly chart shows how far this pair has fallen with little or no retracement (see chart).
  • Weekly chart shows extended sideways consolidation inside wide 1.52/1.62 range (see chart).
  • Daily chart shows that the long-Fibo of the 1.5440/1.6270 move held firm (see chart).
  • 2-hour chart is trading sideways but is trying to form a platform trend-line from which to launch another move higher (see chart).

Play from the long side with a stop below 1.5720. If triggered, look for deeper dips to reinstate longs when short-term support forms, as long as medium-term range lows near 1.5200 continue to hold. Longer-term target at 1.8800.

  1. Thanx for an idea. I usually prefer to enter on the edges of 4H bollinger bands, thus will put small buy order at your stop loss level 1.5720)))) But overall I will be cautious, I really do not like signs posted by EUR/CHF in recent trade. As long as EUR/CHF is in sliding mode, I am not sure I want to be long anything in the vicinity of Europe…. Cheers.

Leave a Reply

Your email address will not be published. Required fields are marked *