Trade Idea

Yo, super risk takers! Welcome to another post of FX trading corner. GBP/CAD has been a pair extensively followed by one of the DailyFX currency strategists John Kicklighter. Going through the charts today, I spotted the formation of a fakey pin on the 4 hourly chart. The 5 wave structure looked complete with the temporary top and there was a potential for a retest of the recent support area at 1.615. The pair looks attractive since there is a potential for it to sink back into the larger daily range. If this were the case, there is the opportunity for some serious pips to be made.

I took the short early at 1.6305 with a stop set at 1.6358. Initial target at 1.6224 area. Things got a bit hairy when it made a daily high at 1.6331. Price has since retraced to the 1.627 area. Looking for the Bank of England interest rate decision to generate some volatility and follow through on this one. Good luck trading again tonight people and keep those stops tight!