Here’s a good trade idea for early next week

keep-calm-i-am-back

Hey traders, how is everything? Are you keeping up with your resolutions?

Any of you put your trading as your top resolution? If you did, I wish you the best in 2014, I know that if you do the things that you are supposed to do, you’ll make it…

And you know what, most traders know what they need to do to start getting results…

So what are you going to do to get there?

Ok now to the trade idea…

GBPCAD Analysis

Do you trade the GBPCAD? I know some traders dont like to trade it because of the spread, but hey, the idea is to trade the currency pairs with the clearest market condition (where you have a good likelihood that the market will continue to move in one direction) not the one with the tightest spread…

Anyway, the GBPCAD is trading around a very important LT level (blue line)… And as you can see, it is ranging in a very clear short term range:

GBPCAD Analysis

So here is my plan (to follow early next week):

If the GBPCAD breaks through the ST resistance level (upper green level at 1.8025) I’ll start looking for long opportunities.

If the GBPCAD breaks through the ST support level (lower green level at 1.7794) I’ll start looking for short opportunities.

You see the beauty about this?

I’m not expecting anything, what ever the market is going to do, I’ll try to adapt and follow it!

A good and relaxed way to trade don’t you think?

You thought I forgot your present…

Of course not.

I’ve been getting a ton of emails asking for the present I promised you last year… but don’t worry, it is going to be just a week late :)

I hope it is ok with you… is it?

I’m waiting a little longer because I want to make sure it will be something useful for you.

Your turn

Hey did you have a good time during the holidays?

Did you start trading already?

What do you think about the GBPCAD trade idea?

Please leave a comment.

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Raul Lopez

I’ve been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .


  • pduarte

    Just one more thing.

    On wednesday we are going to have important news both on the GBP and the CAD.

    • Raul Lopez

      That’s right, all GBP crosses will move on Wednesday, that’s for sure…

  • pduarte

    Hello Raul,

    Hope to find you Ok.

    About enter a trade on the gbpcad I agree that we must see what happens in a pullback as a confirmation to the bullish breakout, and I think that we must be carefull because if we analise what is happening with the gbp and the we see that the GBP is on long time high’s on the GBPAUD; GBPJPY; GBPUSD and GBPCAD it self and the CAD is on long time lows on USDCAD; EURCAD; NZDCAD AND of course GBPCAD itself, so carefull is the word.

    If it break’s down, then, that is another analise that we must do to consider go short

    What do you think about this Raul?

    Cheer’s

    Paulo

    • Raul Lopez

      I definitely agree with you Paulo, thank you for your analysis…

      We need to wait for a pullback to make sure we dont trade false breakouts… And the fact that most of them are trading either at long time lows or high makes me extra cautious!

      Thank you again Paulo!

  • christian

    I do not know… you are the a analyste;-)

    • Raul Lopez

      Well… that was my analysis Christian… do you agree with me? or not?

  • Chad Hogan

    Hi Raul how are you going?
    I agree totally with the GBPCAD analysis. I was looking to go long last week but didnt get a signal according to my plan. Those false breaks worry me though. Ive lost count of how many losses Ive taken because of them even when my analysis of market direction is correct. I’ll keep trying. Thanks.

    • Raul Lopez

      Hey Chad,

      We are not allowed to take those breakouts since the market is trading at an important level…

      A breakout here will trigger either a bullish or a bearish condition. Only after the breakout, we start looking for a trade opportunity.

      We need to wait for a pullback and then open our trade!

      What do you think?

  • Hosny Sadek

    Hi Hi Hi greetings for you my Dear Mr. Raul and it is a very clear and correct point of view that GBP did, as I think, all its effort last Friday 9:30 am

    thus I expect that every good movement of the CAD it will bear the GBP/CAD down back . and its down side will be great

    • Raul Lopez

      The only thing that I’d like to see is the GBPCAD moving!!!!! either way, I’ll adapt… but I just want it to break that ST range…

      Cheers,

  • Craig Hantke

    Hey Raul,

    I stayed away from the GBPCAD, but will trade soon! I already had some successfull trades on EURCAD, NZDUSD, GBPJPY.
    Looking forward to your good news ;)

    • Raul Lopez

      Hey Craig, Wow! Did you close them already? Congrats!

      • Craig Hantke

        I’ve closed them all. closed the eurcad much too early but still great trade

  • Waqas Khan

    thanks for comming back

    • Raul Lopez

      No worries man…

  • Waqas Khan

    very nice

    • Raul Lopez

      Thanks Waqas! How is everything?

      • Waqas Khan

        my money management skill is very weak that’s why i am struggling.

        trading is all about managing Risk not making prediction. i am working hard.

        • Raul Lopez

          You are right Waqas, that’s the reason you need to take care of the trades that are moving against you… the ones that are moving on your favor will take care of themselves…