Not planning on holding swing or long-term trades?
Same. That’s why I’m looking at GBP/USD’s short-term downtrend and CAD/JPY’s lowkey range setup!
Which trade will you more likely take?
GBP/USD: 1-hour
GBP/USD 1-hour Forex Chart
First up is a nice and simple trend trade on Cable’s 1-hour chart.As you can see, GBP/USD has been making lower highs and lower lows since the first week of October.
More importantly, price is now testing the trend line resistance of those lower highs while Stochastic just left overbought territory.
Are we looking at a downtrend extension this week?
Shorting at current levels would yield a good risk ratio especially if GBP/USD’s descending channel holds and the pair makes new weekly lows.
If you’d rather buy GBP against USD, then you can also wait for a clear break above the channel resistance and aim for short-term areas of interest like 1.1225, 1.1370, or 1.1470.
CAD/JPY: 1-hour
CAD/JPY 1-hour Forex Chart
Who’s up for range trading? If you are, then I should tell you that CAD/JPY is hanging out near the top of a range that’s been around all month.
You can short at current levels and place your stops just above October’s highs if you’re betting on CAD/JPY revisiting its 105.25 or even its 104.70 lows.
Think CAD/JPY is due for an upside breakout?
A clear break above the 106.50 range resistance could push the pair to its 107.50 or 108.00 previous inflection points.
Watch this one closely, yo!
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