If you’re craving for some short-term setups on the pound, then I just have your fix since I’ve got a short-term rectangle on GBP/CAD and a rising wedge in today’s intraday charts update.
As y’all can see, the pair has been trading sideways while respecting resistance at 1.7450 and support at 1.7340, giving us a nifty 110-pip trading range or rectangle to play with.
If you be lookin’ to trade within the range, then head ups because the pair is about to test the rectangle’s resistance at 1.7450. Moreover, stochastic is already signaling overbought conditions and all that.
However, them moving averages just recently crossed-over into uptrend mode, so there’s a chance that the pair may break to the upside. And if that does happen, then them bulls will likely be gunning for 1.7560 next.
And assuming 1.7450 holds as resistance. There’s then a chance that them bears may attempt a downside breakout. In which case, they’ll likely be shooting for the next area of interest at 1.7230.
Is GBP/USD in for more downside moves? Well, there appears to be a better-than-average chance that the pair may move back down soon. After all a rising wedge has apparently formed on GBP/USD’s 1-hour chart. Also, stochastic has already reached overbought territory.
And if the pair does validate the chart pattern, then bears will likely be gunning for 1.2600 next, which is a real long way away. Know what I’m sayin?
Do note, however, that there’s a slim chance that the pair may attempt an upside channel breakout instead. The pair needs to clear 1.2990 on strong momentum before an upside breakout is validated, though. Otherwise, the breakout attempt may end up being a fakeout instead.
Anyhow, just keep on your toes and always remember to practice proper risk management, a’ight?