Yo. Ready to trade currencies for the first full week of October?
Today we’re looking at trend continuation plays on GBP/USD and USD/CAD.
Check them out and see if you can make pips from their charts!
GBP/USD: 4-hour
In case you missed it, the pound had a VERY weak couple of weeks against the dollar. Pound bears legit dragged GBP/USD 500 pips lower before the bulls took notice!
Cable is now trading just under 1.3550, which is a stone’s throw away from the 1.3600 psychological handle that lines up with a broken support and the 38.2% Fib pullback of the last downswing.
Trend playas who are confident that the bearish divergence will play out can short at current levels and target September’s lows. Of course, you can also wait for a pullback to 1.3600 if you believe that at least some bulls can push the pound up to the level.
Feel like the downside “breakout” is a fakeout and that GBP/USD will soon trade above 1.3600? Look out for consistent trading above the SMAs, which could lead to retests of the 1.3900 previous resistance areas.
USD/CAD: 4-hour
A few weeks ago, we saw USD/CAD trade near a trend line support on the 4-hour chart.
The dollar has clocked in gains against the Loonie since then, but USD/CAD bears also dragged the pair back down to the trend line that we marked.
Are we looking at another good entry point for USD/CAD’s longer-term uptrend? Trend warriors can start scaling in at current levels and add positions as soon as we see bullish momentum.
If you think that USD/CAD is ready for a longer-term reversal, however, then you can also design trading plans around a downside breakout of the trend line support.
Whichever bias you end up trading, make sure you’re practicing your best risk management moves when you pull the trigger on your trades!
