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Ready for some mid-week setups?

We’re all about the pound today, as we explore GBP/USD‘s downtrend and a mid-range support on GBP/CAD.

Which setup will you most likely trade?

GBP/USD: 1-hour

GBP/USD 1-hour Forex Chart
GBP/USD 1-hour Forex Chart

I spy with my eye a downtrend on the 1-hour time frame!

GBP/USD got rejected at the 1.4000 major psychological handle and has fallen by 200 pips since the rejection.

Can the bears keep up their pressure? The bulls have taken back at least 100 pips since the 1.3800 low but now the channel and 200 SMA resistance are presenting an opportunity for the bears.

Shorting at the first signs of bearish momentum would yield a decent risk ratio especially if Cable keeps making lower highs.

If the bulls find enough friends to push GBP/USD above the channel resistance, however, then you gotta be ready to aim for the 1.4000 previous highs.

GBP/CAD: Daily

GBP/CAD Daily Forex Chart
GBP/CAD Daily Forex Chart

Are longer-term setups more your thing? Don’t worry, I got yo back!

GBP/CAD just hit the 1.7300 major psychological handle, which lines up with the 200 SMA and is a few pips shy of a mid-range support on the daily.

Will we see a bounce at the level? I’m not seeing any momentum yet so y’all might want to wait and see how GBP/CAD reacts to an actual test.

If green candlesticks pop up at the 1.7300 zone, then you can place them long orders and aim for the range highs near 1.7700.

But if pound bulls maintain their momentum long enough to break below 1.7300, then you can start planning for retests of the 1.7000 or 1.6800 key inflection points.