Overnight the GBPCAD fired off a massive Bearish Engulfing Bar (BEEB) on the 4hr chart. This BEEB was extremely large and as we know big candles equals big momentum.
Once the low of the BEEB was broken, price smashed lower to break the recent support levels. The traders who entered this setup have now been given a chance to take profit or at the minimum protect their capital.
Price is now sitting on support around 1.5780 as I write this, and we will see during the next daily session if this support will also break.
GBPCAD 4HR CHART – 18 OCTOBER 2012
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