It’s all about the pound on today’s canvas, as we check out EUR/GBP and GBP/CAD‘s charts for long-term opportunities. Get ’em while they’re hot!
A couple of days ago we identified a potential double bottom on EUR/GBP’s weekly time frame.
If you’re looking for a shorter-term opportunity, though, then you’ll love that the pair is now sporting what looks like a double top on the 4-hour time frame.
EUR/GBP is still about 50 pips from the .8640 “neckline” so y’all still have time to design a trading plan if you’re betting on a double top breakout in the next few days.
Of course, you can also enter at current prices if you’re REALLY confident that the euro will reverse its late February upswing against the pound.
If you’d rather buy the common currency against the pound, then you’ll want to wait first to see how EUR/GBP reacts to the “neckline” and trade a possible bounce from the level instead.
Breakout alert! After gapping higher over the weekend, GBP/CAD is now trading less than 100 pips above the 1.7800 handle that has been serving as range resistance since 2016.
Are we looking at a legit breakout? A clear break above 1.7800 could inspire a move up to the 1.8300 or 1.9000 previous highs.
But what if we encounter a fakeout again? As you can see, the pair had broken above the range back in 2018 before falling back down to mid-range levels.
If EUR/CAD encounters selling pressure and closes below 1.7800 this week, then we could see a return back to the 1.7000 mid-range areas, if not the 1.5900 range support levels.
Forex Chart Settings:
Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line
Roz has been engaged in the financial markets since 2017, specializing in Foreign Exchange, Before joining to FOREX IN WORLD she start to learn forex trading related information.
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