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We’re looking at trend-retracement plays on GBP/USD and USD/CAD today. Time to bring your top dollar-trading strategies!

GBP/USD: 4-hour

GBP/USD: 4-hour Forex Chart
GBP/USD: 4-hour Forex Chart

Guess who’s back, back again? The Real Slim Shady got nothing on Cable, which is a hair’s breadth away from the 1.2950 minor psychological handle.

What makes the area more interesting is that it’s right around the 200 SMA AND a falling trend line resistance that hasn’t been broken since mid-May.

Think the pound is in for more losses against the Greenback?

USD/CAD: 4-hour

USD/CAD 4-hour Forex Chart
USD/CAD 4-hour Forex Chart

Breakout alert! USD/CAD has broken above a falling channel but has encountered resistance around the 1.3200 major psychological handle.

The 1.3100 level is a good area to watch since it lines up with a 38.2% Fib retracement and has served as support and resistance for USD/CAD since early July.

Buying at the earliest signs of bullish momentum is a good play if you believe that the Greenback bulls won’t wait around before hitting new monthly highs.

If you’re expecting a deeper pullback, however, then you might want to wait for possible dips to the 38.2% Fib, the 50% Fib near the SMAs, or an oversold stochastic signal.

Good luck and good trading!

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line