Partner Center Find a Broker

Welcome to the last trading day of the week!

We’re going back to dollar trading today with a breakout setup on GBP/USD and a range play on USD/CAD.

Check them out!

GBP/USD: 1-hour

GBP/USD 1-Hour Forex Chart
GBP/USD 1-Hour Forex Chart

Triangle alert! As you can see, GBP/USD is confined in what looks like a symmetrical triangle on the 1-hour time frame.

Recall that triangles can break in either direction. If pound buyers extend Cable’s uptrend, then we could see the pair break up to the 1.2660 or 1.2725 previous areas of interest.

If traders pay more attention to the SMA crossover that has predicted short-term trends in the last SEVEN times that it happened, then GBP/USD could see a breakdown (downside breakout). The 1.2525 and 1.2450 levels are prime targets if you’re in the bear camp.

What do you think? Which way will GBP/USD go in the next trading sessions?

USD/CAD: 1-hour

USD/CAD 1-hour Forex Chart
USD/CAD 1-hour Forex Chart

A week ago we talked about USD/CAD testing a range support that hasn’t been broken since mid-June.

If you had bought in the area, then you would’ve seen at least a 100-pip move!

Thing is, USD/CAD is now having trouble making highs above the mid-range level. What’s more, Stochastic is already poppin’ an overbought signal!

Will we see a retest of the range support? Shorting at current levels is your best bet if you think that the dollar will revisit the 1.3500 handle against the Loonie.

If you’d rather buy the Greenback against the comdoll, however, then you can also wait for a break above today’s consolidation and then target a potential trip to the 1.3680 range resistance.

Watch this one closely, yo!

Forex Chart Settings:

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