21 Jul 2015

PENNANTS ON GBP PAIRS

EUR/GBP H4

After breaking the major support at 0.7000, the rate is now consolidating just below. It seems to have formed a bearish pennant.

A break below 0.6930 (the pennants low) would open up a way to the breakout targets at 0.6800 and 0.6790.

A daily close back above 0.7000 would invalidate the trade idea.

GBP/CAD H4

The BOC rate cut last week made CAD the least attractive currency all over the board. GBP/CAD is now taking a breather before the next possible move higher.

A break above the pennants high at 2.0325 would open up a way to breakout targets at 2.0700 and 2.1000.

Only a daily close below 1.9500 would turn my outlook for the pair to negative.

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