Analytical Sunday presents us with GBP/USD, GBP/JPY, USD/CAD & EUR/AUD

Hello Traders,

Another trading week is upon us, and I can see some pairs already gearing up for some good moves.

That said, how did your weekend go?

I was busy tending to our kennel, another breeding season has begun. Looking forward to a beehive of activities in another eight weeks.

Alriiiight,

Let’s see what the market has in store for us…

1. GBP/USD

On the weekly chart, we can see GBP/USD resting on a key support level (1.20307)

The last time price broke through the current support level, was sometimes in October 2016.

Last week closed with the Bears looking strong and healthy. This week we should be looking out for either a bullish reversal which could take price back to resistance level 1.24835 or a continuation of the bearish trend to the next possible support level 1.14698.

2. GBP/JPY

After a period of price consolidation on the GBP/JPY, Friday brought about a bearish breakout of support level 128.175.

We may see a pull-back of price as soon as the market opens in a few hours from now. If that happens, we could wait for a sell confirmation and maximize our risk-reward ratio while selling off this pair, keeping in mind that price level 124.741 is our next possible support level.

3. USD/CAD

USD/CAD has a beautiful setup on the 4 hours chart.

If the pair ever get to breakout below the ascending channel, we will have to be patient enough to see price also break through the consolidation band (1.31597) before selling it, having in mind that the next possible support level would be 1.31065.

On the other hand, this pair could also start a bullish run as soon as the trading week resumes. If that happens, we should be patient enough to wait for price to break through resistance level 1.32430 before placing a buy to the next possible resistance level (1.33405).

4. EUR/AUD

EUR/AUD made an impressive Bullish/Bearish move last week.

When the market closed on Friday, price rested on support level 1.64048. which coincided with the trendline we drew over two weeks ago.

Thie big question now is:

Are we going to see price retest resistance level 1.67876 which is roughly +280 pips away?

Or

Are we going to see price break the current support level, and head towards the next possible support level (1.62065)?

Whatever the direction price decides to take, we should ensure that our system confirms the direction.

Thank you guys for staying this long, reading through our analysis. 

Join us again tomorrow and all through the week as we update you on what’s going down in the market.

Do have a pip-full week ahead.