If riding trends is your thing, then you may wanna check out today’s intraday charts update ‘coz I’m serving up another batch of channels, with GBP/CAD and USD/CAD in focus.
GBP/CAD has been trading with a downward tilt for some time now. And if connect the most recent peaks and troughs, we can see that the pair has been trapped inside that there descending channel.
And as y’all can also see, the pair is currently moving lower after testing the channel’s resistance area, which is just above the area of interest at 1.6760.
Y’all may therefore wanna start lookin’ for opportunities to go short. And all the more so since the 100 SMA appears to be acting as dynamic resistance.
However, do note that stochastic is already signaling overbought conditions already. There’s therefore a higher-than-average chance for an upside channel breakout. So just be ready to bail yo shorts if the pair surges higher and smashes past 1.6870 since that’s a signal that them bulls are likely in charge.
USD/CAD appears to be gearing up for a potential upswing since the pair is currently testing that there ascending channel’s support area at 1.3070.
Moreover, them moving averages are currently in uptrend mode. And it even looks like the 100 SMA may act as dynamic support. Also, stochastic is already signaling oversold conditions and all that.
At any rate, there are plenty of technical arguments for support to hold and for the pair to move higher. Y’all may therefore wanna get ready to start lookin’ for opportunities to go long on the pair.
As usual, just be reminded that there’s always a risk for a downside channel breakout. Such a scenario doesn’t seem likely at the moment. But if such a scenario does play out, then a move lower past 1.3030 would invalidate the channel and confirm the breakout move.
In any case, just make sure y’all remember to practice proper risk management, a’ight?