GBP gaining strength, USDCAD getting close to important support

I guess that trend followers do enjoy this week of trading. On many instruments we are having movements which respect the latest mid/long-term trend. That is happening without any interference from the fundemantals as the calendar is rather empty and the central bankers that were speaking this weak were usually predictable.

Cable broke the upper line of the wedge yesterday. That triggers a but signal, especially that today we do make higher highs and higher lows, which increases the chances for a success. GBPUSD has a buy signal and is on a best way to set new yearly highs.

GBP can be also seen on the EURGBP were we can see a potential for a false breakout here. Buyers broke the horizontal and dynamic resistances but failed to use them as supports. Currently we are testing the 0.877. Breakout of this level can be lethal and should trigger a sell signal.

USDCAD is doing what expected after the price broke crucial long-term support. We have just experienced the 200 pips downswing. Currently we are close to the horizontal support and the 23,6% Fibo. That can be a potentially nice place to take some profits. Sellers should be careful.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis