British Pound Canadian Dollar

Good evening Dynamic Traders,

Nearly half way through the trading week and I thought I would show you a chart that I am looking at for a continuation to the downside.

The daily timeframe below, which is still in a longer term downrend, is showing signs of continuing its southern trek. We had a slightly down on the day doji with big wick yesterday who's high was at the golden mean, and today we have a slightly up doji for the day. The pattern looks like a possible bearish flag ( although extended ).

If we now take a look at the 4 hour timeframe chart below we can see signs of a 123 top forming as I am writing, and also around the figure. I am going to be aggressive on this pair as it is a large moving cross and therefore want to keep my stop as close as possible.

I have also gone down to lower timeframes for my analysis and recommend you all to do the same if you are going to consider this, as they will reveal more clues as to when and where the possible turn will come, like an OB stochastic on the hourly being just one indication showing that this legg up is possibly running out of steam.

As always please do a complete analysis for yourselves before taking any trades.














Charts courtesy of TradeStation.

Happy analysing.

Clayton Farnworth.