Friday, May 29, 2020

Bullish Divergence On GBPCAD

Marco Tosoni

FХ Strategist & Financial Commentator

After a first quarter of 2020 characterized by a huge volatility and a trading range climax throughout April, during the month of May this pair has started a sharp drop bringing the quotes back towards 1.6800 area, without significant corrections in between.

During yesterday’s session, by the way we finally had a bounce with the formation of the first bullish marubozu candle of the month of May, pushing the quotes back to 1.70 area.

Taking a look at the RSI indicator, we can now detect a perfect bullish divergence that should be pretty reliable, especially with a short-term outlook. The Average True Range on the other hand is still declining as we have seen over the past two months and it’s currently working around the 2019 levels, so this element should favour a bounce of the pound.
The bullish setup would be activated in case of a breakout of yesterday’s top over 1.7000 area, with a stop loss to place at 1.6800 below yesterday’s bottoms. The target price on the other hand can be predicted around 1.7200 nearby the previous bottom area set in the beginning of May.

As always I recommend to trade carefully and to plan at best every move. Don’t forget to subscribe to NBHM YouTube Channel to stay up to date with the financial markets! Have a good trading and see you for the next video.

Watch Full video

Recent Articles

Bullish Setup On USDJPY

Bullish Setup On USDJPY Marco Tosoni FХ Strategist & Financial Commentator After the strong...

Bearish Setup On Crude Oil

Bearish Setup On Crude Oil Marco Tosoni FХ Strategist & Financial Commentator After setting...

Bearish Divergence On AUDCAD

Bearish Divergence On AUDCAD Marco Tosoni FХ Strategist & Financial Commentator After setting...