Welcome to a brand spankin’ new trading week, fellas! Hit the ground running with these hot forex setups on EUR/GBP and GBP/CAD’s daily charts!
Euro traders huddle up! EUR/GBP is currently flirting with the .8700 major psychological handle, which is right smack at a descending triangle resistance on the daily chart.
What makes the setup more interesting is that the previous candle is sporting a pretty long wick around the triangle resistance. In addition, stochastic has hit the overbought levels that it did before it fell to the .8350 support.
Think the euro is about to weaken against the pound? Shorting at current levels could get you a sweet reward-to-risk ratio if you think that the pair will go back down to .8350. You might wait for a couple of bearish candlesticks to confirm a bearish move though.
Meanwhile, a breakout play sounds best for euro bulls out there. Just make sure you place wide stops for crosses like these!
GBP/CAD bears have succeeded in dragging the pair by 700 pips from its 1.7800 high earlier this month. Will the bulls step in this time?
As you can see, the 1.7100 – 1.7300 area has been one of interest for the bulls and bears in the past. But this time around, the pair is sitting on a rising trend line support AND Fibonacci retracement levels. What’s more, the 100 SMA has also just crossed above the 200 SMA!
The cherry on top of the sweet setup is a possible bullish divergence on the chart. Watch out for possible bounces in case the uptrend seen since the start of the year pushes the pound to new yearly highs against the Loonie!