GBP/CHF is finding support at the 1.2950 area, which is right smack at a broken resistance level on the 1-hour time frame. What’s more, it also lines up with a 38.2% Fib retracement of the pair’s latest upswing!
Is GBP/CHF ready for more gains? MarketMilk seems to think so. As you can see, moving averages are still mostly on the “bullish” side on the 1-hour chart:
Buying at a break above the current consolidation is a good idea if you believe that the pound will extend its gains against the franc. If you’d rather short GBP/CHF, however, then you can also wait for a clean break below the broken resistance trend line and aim for previous support closer to the 100 and 200 SMAs instead.
Whichever bias you choose to trade, make sure to follow your trading plan like your account depends on it!
USD/CAD is lollygagging around the 1.3300 major psychological handle, which lines up with a falling trend line resistance that looks a lot like a triangle ceiling on the daily time frame.
What makes the setup interesting today is that there might also be a bearish divergence on the chart.
Think USD/CAD bears are ready to attack? Shorting at the earliest signs of bearish momentum would give you the best reward-to-risk ratio especially if the pair ends up falling back to its 1.3050 lows.
Not comfortable shorting the dollar against the Loonie? You can also wait for the current consolidation to end in a breakout that would take USD/CAD above the trend line and aim for previous areas of interest near 1.3400 or 1.3500 handles instead.
Good luck and good trading, yo!