GBP/CAD: Ichimoku clouds

08 April 2019, 21:56

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	1.7390
Take Profit	1.7365
Stop Loss	1.7440
Key Levels	1.7370, 1.7555

Let's look at the four-hour chart. Tenkan-sen line is below Kijun-sen, the red line is directed downwards, while the blue one remains horizontal. Confirmative line Chikou Span is below the price chart, current cloud is descending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. One of the previous minimums of Chikou Span line is expected to be a support level (1.7365). The closest resistance level is Tenkan-sen line (1.7440).



On the daily chart Tenkan-sen and Kijun-sen lines have merged, the lines are horizontal . Confirmative line Chikou Span has crossed the price chart from above, current cloud is ascending. The instrument is trading around upper border of the cloud. The closest support level is the upper border of the cloud (1.7370). Merged Tenkan-sen and Kijun-sen lines have become a strong resistance level (1.7555).

On the four-hour chart the instrument is still falling. On the daily chart we can see the beginning of the trend reversal. It is recommended to open short positions at current price with Take Profit at the level of previous minimum of Chikou Span line (1.7365) and Stop Loss at the level of Kijun-sen line (1.7440).