Cable is trading inside what looks like a descending triangle after breaking below a trend line support on the 1-hour time frame.
Are we looking at a reversal in the making? A break below the 1.3550 support – especially supported by an SMA crossover – could drag GBP/USD to the 1.3450 previous low.
But wait! Don’t forget that not all descending triangles see downside breakouts.
If GBP/USD manages to trade above its trend line resistance, then we could be looking at a retest of the 1.3700 previous high.
As you can see, NZD/CAD is sporting a nice bearish divergence on the daily time frame.
What makes the opportunity more interesting today is that the divergence popped up just as NZD/CAD has hit the key .9250 previous resistance AND channel resistance area.
Shorting at current levels provides the best risk ratio if you’re thinking of trading against NZD/CAD’s overall trend.
If you’d rather buy the Kiwi against the Loonie, though, then you’ll want to at least wait for a decent pullback (maybe to some Fib retracement levels?) or a break above the channel resistance before you place them long orders.
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