GBPCAD neutral

GBPCAD: filtering Bollinger Reversal signals with macroeconomic background

20 august 2021 116
Elena_Baklanova
Elena_Baklanova

Listed among the best MarketCheese authors
1st in the segment "Crypto"
2nd in the segment "Agricultural commodities"
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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.

Elena_Baklanova
Elena_Baklanova

Listed among the best MarketCheese authors
1st in the segment "Crypto"
2nd in the segment "Agricultural commodities"
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