Welcome to a brand spankin’ new trading week, forex fellas! Hit the ground running with these short-term range and trend plays on GBP/USD and USD/CAD!
First up is a nice and simple range play on USD/CAD’s 1-hour time frame. As you can see, the pair is lollygagging just below the 1.2900 major psychological handle, which lines up nicely with a range resistance that hasn’t been broken since late October.
What makes the setup more interesting is an overbought stochastic signal on the chart. At this point, selling around the current levels could give you a good reward-to-risk ratio especially if the pair does sink back to its 1.2680 range support.
If you’re a Loonie fan, though, then you could also wait for the pair to break above 1.2900 and aim for the next area of interest around 1.3000. Whichever bias you choose, make sure you practice good risk management decisions when you execute your trades!
Here’s one for the countertrend warriors out there! GBP/USD is having trouble breaking below the 1.3315 handle, which isn’t surprising since the level has been an area of interest from early November.
This time around the level lines up with a retest of a falling channel support. And with stochastic chillin’ like a villain on oversold territory, you can bet your pips (but not the farm) that other bulls are getting ready to pounce.
Before you hit your buy orders like there’s no tomorrow, though, you should know that not everyone is built for countertrend trading. Make sure you’re psychologically prepared to trade against the trend if you do decide to take advantage of this one!