GBP/CAD: Ichimoku clouds



Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. The closest support level is Tenkan-sen line (1.6230). One of the previous maximums of Chikou Span line is expected to be a resistance level (1.6345).




On the daily chart Tenkan-sen line is below Kijun-sen, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span is crossing the price chart from below, current cloud is descending. The instrument has broken through Tenkan-sen and Kijun-sen lines. The closest support level is Kijun-sen line (1.6160). The closest resistance level is the upper border of the cloud (1.6395).


On the four-hour chart the instrument is still rising. On the daily chart we can see the beginning of the trend reversal. It is recommended to open long positions at current price with Take Profit at the level of previous maximum of Chikou Span (1.6345) line and Stop Loss at the level of Kijun-sen line (1.6230).

Scenario

  • Timeframe

    Weekly

  • Recommendation

    BUY

  • Entry Point

    1.6320

  • Take Profit

    1.6345

  • Stop Loss

    1.6230

  • Key Levels

    1.6160, 1.6395