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I’m looking at a couple of pound setups and a potential swing play on a Loonie pair this week. Check ’em out while they’re fresh!

EUR/GBP

EUR/GBP Daily Forex Chart
EUR/GBP Daily Forex Chart

First up is this simple downtrend play on EUR/GBP. This pair has been trending inside a descending channel for quite some time and looks ready for yet another test of resistance.

Sellers could return around the .8900 major psychological level as stochastic is already lingering around the overbought zone. However, more dovish remarks in the BOE Inflation Report hearings this week could give pound bears enough energy for an upside break.

EUR/CAD

EUR/CAD 4-hour Forex ChartEUR/CAD 4-hour Forex Chart
EUR/CAD 4-hour Forex Chart

The oil-related Loonie could keep drawing strength from rising Black Crack prices, so I’m keeping an eye out for a pullback on this EUR/CAD downtrend channel.

Price is currently testing support but stochastic is pointing up to show that buyers have the upper hand. This could spur a correction to any of the Fib levels, possibly the 38.2% level that lines up with the channel resistance or the higher levels spanned by the area of interest.

CAD/JPY

GBP/AUD Daily Forex Chart
GBP/AUD Daily Forex Chart

Lastly we’ve got this long-term rising wedge pattern on GBP/AUD that might see a breakout pretty soon. Price is testing support at the 1.7950 minor psychological level and the top-tier events in the U.K. this week could determine which direction this could go next.

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