GBP/CAD: Ichimoku clouds 29 May 2018, 22:13

GBP/CAD: Ichimoku clouds

29 May 2018, 22:13

Scenario
Timeframe	Weekly
Recommendation	SELL STOP
Entry Point	1.7220
Take Profit	1.7115
Stop Loss	1.7260
Key Levels	1.7115, 1.7540

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.7260
Take Profit	1.7320
Stop Loss	1.7220
Key Levels	1.7115, 1.7540

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is above the price chart, current cloud is descending. The instrument has entered the cloud. The closest support level is the lower border of the cloud (1.7220). The closest resistance level is the lower border of the cloud (1.7260).



On the daily chart Tenkan-sen line is below Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is below the price chart, current cloud is descending. The instrument has been corrected to the Tenkan-sen line. One of the previous minimums of Chikou Span line is expected to be a support level (1.7115). The closest resistance level is Kijun-sen line (1.7540).

On the four-hour chart the instrument is trading within the cloud. On the daily chart we can see a correction of the downward movement. It is not recommended to open positions at current price. Pending orders should be placed at the cloud’s borders: sell at the level of 1.7220, with Take Profit at 1.7115 and Stop Loss at 1.7260; buy at the level of 1.7260, with Take Profit at 1.7320 and Stop Loss at 1.7220.