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Welcome to mid-week trading, yo!

Today we’re checking out not one, but TWO short-term trend opportunities.

Are you seeing what I’m seeing on GBP/USD and EUR/JPY‘s charts?

GBP/USD: 1-hour

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

I don’t know if you’re watching Cable (the currency pair, not TV shows) but it just popped by just under 100 pips in less than a day!

GBP/USD is now testing the 1.4120 zone, which is right around the 100 and 200 SMAs on the 1-hour time frame. More importantly, the current levels line up with a descending channel resistance that’s been around since the start of the month!

Pound bears can pounce at current levels and aim for June’s lows near 1.4040. If you’d rather trade an upside breakout, however, then you can also wait for a clear break above the trend line and SMA resistance areas and then shoot for the 1.4185 June highs.

What do you think? Can the pound extend its downtrend against the dollar?

EUR/JPY: 1-hour

EUR/JPY 1-hour Forex Chart
EUR/JPY 1-hour Forex Chart

Here’s another trend you should look at! See, EUR/JPY had been trending on a downtrend but has recently broken above its trend line and SMA resistance areas.

Are we looking at an upside breakout play over here?

The euro just spiked back down to the 200 SMA levels, so euro bulls who believe that this is a legit breakout can start loading up long positions at current levels.

Think the euro will soon go back to its downtrend against the yen? Look out for EUR/JPY trading consistently below the SMAs again, which could convince bears to drag the euro back down to its 133.00 lows.