Bollinger Reversal signals pointing towards selling appeared yesterday and today and were supported by the Accumulation/Distribution indicator.
Yesterday at the moment of the signal’s formation, the macroeconomic background filter showed 8 out of 14 points for selling GBPCAD: 3 points for GBP (highlighted in red) and 5 points for CAD (highlighted in green).
According to our study (“Fundamental Analysis as a filter of technical signals”), this is not enough to enter the market. Let’s wait for the 9th point.
And voi-la, today at 9 o’clock (Moscow time), UK retail sales went down, and now we have 9 out of 14 points for the macroeconomic background filter suggesting to sell the pair: 4 points for GBP (highlighted in red) and 5 points for CAD (highlighted in green).
If today at 15:30 MSK the base index of Canada’s retail sales happens to be greater than -2%, then this will strengthen today’s suggestion that comes from the filter, and on monday we will be able to sell the currency with the target at 1.728.
This content is for informational purposes only and is not intended to be investing advice.
