GBP/CAD Provides Bullish Signals
July 13th, 2009 Posted in Analyst Picks, GBP - Pound Sterling
Name: Yan
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• The chart below is the GBP/CAD 4-hour chart from ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic and the Relative Strength Index (RSI). The Fibonacci Retracement Lines were used as well.
• A doji candlestick, located at the 38.2% line, indicates that a sharp movement is impending, with the potential to reverse the trend.
• Currently, it seems that the pair’s bearish momentum was halted upon reaching the 1.8700 level, which is the 38.2% level on the Fibonacci.
• A bullish cross has taken place on the Slow Stochastic, suggesting that a bullish reversal might take place soon.
• The RSI has bottomed below the 30 line, meaning that the pair is currently over-sold. However, it is recommended to wait until the RSI points back upwards, as this indicates a much stronger signal.
• All of the above indicates that an upward move is likely to happen soon, yet the signals are not certain. If the bullish move will indeed take place, it has the potential to reach all the way up until the next Fibonacci Retracement line, located around the 1.8950 level.
GBP/CAD 4-Hour Chart
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