I guess that trend followers are enjoying this week’s trading. On many instruments, we are seeing movements that respect the latest mid/long-term trend. This is happening without any interference from the fundamentals as the calendar is rather empty and the central bankers that were speaking this weak were fairly predictable.
The cable broke the upper line of the wedge yesterday. This may trigger a buy signal especially since we’re making higher highs and higher lows today, which increases the chances of success. GBPUSD has a buy signal and is on the way to setting new yearly highs.
GBP can be also seen on the EURGBP where we can see a potential for a false breakout here. Buyers broke the horizontal and dynamic resistances but failed to use them as supports. We are currently testing 0.877. A breakout of this level could be lethal and should trigger a sell signal.
USDCAD is doing as expected after the price broke a crucial long-term support. We have just experienced a 200-pip downswing. Currently, we are close to the horizontal support and the 23,6% Fibo. That could potentially be a nice place to take some profits. Sellers should be careful.