The GBP/CAD H4 time frame is shown on the chart below. This pair could reverse back up in the main session tomorrow on this time frame. Traders can set a price alert at 1.7050 the check for a buy signal on The Forex Heatmap®. Traders should also check forex news calendar for the British Pound (GBP) news drivers tomorrow or Canadian Dollar (CAD) news drivers.
GBP/CAD H4 Time Frame
If the price alert hits and the trade entry is confirmed by the heatmap, you can enter the trade with upside potential to the 1.7200 resistance area. The majority of the GBP exotic pairs on the market have been retracing against their major trends, so this upcycle would be expected to be 2-3 days, similar to the recent retracements and up cycles on the GBP/AUD and GBP/NZD. This happens frequently when pairs with one common currency follow each other like dominoes falling, we call this the domino effect. In this case the GBP/CAD should follow the GBP/AUD and GBP/NZD recent moves up. The H4 time frame on the chart below is some simple 5/12 exponential moving averages set up on the meta trader charting platform. This is a great example of a swing trade setup, we use the H4 time frame in our trading system for swing trade entry points at or near the beginning of the cycle.