GBP

Possible long set-up here with a successful break and hold of the triangle/flag formation. Ideal entry would be at the 50% support level (1.5900) with a tight stop in anticipation of a breakout or on a back test of the sloping trend line following a successful break-out.

This week has proven to be yet another week where all of the pre-planned trades that were taken played out perfectly. I don't know how long this can last, but I've been saying that for weeks now so can only conclude that the inception of this blog has in some way disciplined me into only taking the absolutely highest probability trades. The only downside being that when everything plays out as planned it makes the blog a little uneventful with not a lot of new content to add mid week.

GBP:CAD has traded a choppy range for over a year now bouncing between 1.5300 and 1.6400 giving regular bursts of up to 1000 point thrusts throughout this time. We now have a situation where it's back at the top of the range so we need to get clues on what the next move is. Historically you can see from the chart that the extensions to the limits of the range were not quite as powerful as this current move, furthermore, it can take days or even weeks to finally roll over at the limits of the range. So we could be slightly premature in hoping for a trade as early as this week, but it's certainly one to be aware of.