Weekly Trading Forecast: GBPUSD, EURCAD, USDCAD and EURAUD

by Justin Bennett  · 

December 13, 2014

by Justin Bennett  · 

December 13, 2014

by Justin Bennett  · 

December 13, 2014

Want more price action setups? Join our Exclusive Member’s Community

Last week saw the start of what might be a few key reversals in the Forex market. One pair that fits that description is GBPUSD. Although the pair is starting to show signs of strength, it’s important to remember that this market has seen five consecutive losing months. Which means it has a lot to prove before any long positions should be considered.

It’s also important to remember that the coming week brings with it another dose of FOMC. As we all know, this is a market-moving event and this time around is rumored to be even more so.

That said, it is possible to come up with a plan that will help to put the odds in our favor should this pair fulfill the reversal potential. The first piece to the puzzle comes in the form of a previous descending channel on the weekly chart.

GBPUSD weekly chart

GBPUSD weekly forex chart

We can see in the chart above that the pair has found support at former channel resistance. Whether or not this area will hold as new support has yet to be seen.

However if we take a look at the daily chart, we can start to get a sense of what it might take to see a true reversal. The 1.5730 level has not only been acting as horizontal resistance, but it also intersects with trend line resistance from July 15th.

This leaves us with a key inflection point to keep an eye on for the coming week. Alternatively, a move lower from current levels would take us back to range support around 1.5580.

Summary: Wait for a daily close above the 1.5730 key inflection point. The next area of resistance comes in between 1.5930 and 1.5960.

GBPUSD daily forex chart

EURCAD analysis

EURCAD daily forex chart

USDCAD analysis

USDCAD 4 hour forex chart

EURAUD analysis

EURAUD daily forex chart

Want Access to All of the Daily Setups?

Join the Daily Price Action Member’s Community

Continue Learning

Leave a Reply

Your email address will not be published. Required fields are marked *

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}