GBP/USD 4 hour



Cable put in a BIG reversal today. I’m not sure what’s going on from a pattern perspective but today’s reversal was accompanied by high volume. The chart below shows high volume (1 day) reversals in futures. Those are some good signals! Also, note that 2021 VWAP was resistance (2 charts down). ‘Levels wise’, price might bounce from near 1.3775. Watch for resistance near 1.3445.

British pound futures daily


British pound futures daily


NZD/USD daily


NZDUSD is finally trying to separate from resistance (upper parallel of the 2021 channel). Downside focus, at least in the near term, remains .7020/30. The 50 day average is creeping up on this level now as well.

9/8 – The Kiwi drop also appears impulsive (5 waves). The implication is the same as it is for GBPUSD. That is, I’m thinking that a corrective (3 wave) bounce is underway from today’s low 7127/36 is ideal resistance. Near term downside focus remains 7030 or so.

USD/CAD 4 hour


USDCAD dipped under 1.2625 before turning sharply higher today. Action since late August has the look of an inverse head and shoulders pattern as well. The neckline is 1.2710/30. If price pulls back within the range then watch for 1.2640/50 for support. I’d love a spike on CPI in order to buy into support with a tight stop on Wednesday. I’ve highlighted the bullish RSI profile as well.

9/13 – We’ve been nailing USDCAD levels! USDCAD responded in kind to the noted 1.2580/90 proposed support and the sequence of waves since 9/3 (impulsive upside and corrective downside) favors the upside. As such, watch for support near 1.2625 (61.8%). The next upside level is unclear although bullish risk is tight at just under 1.2582.

GBP/JPY 4 hour


GBPJPY has rolled over from 3+ month trendline resistance. There is the specter of a 6 month head and shoulders with a 148.50 neckline. If confirmed, the target for the h&s would be just under 140 (see zoomed out view below). Action since the March 2020 low is also a textbook wedge. Wedges often result in sharp reversals and this wedge would break below 150.50. Proposed near term resistance is 151.90-152.10.  Bottom line, the potential is there for GBPJPY short to be a massive trade.

GBP/JPY daily


EUR/GBP daily


EURGBP looks constructive. A possible double bottom is visible at a well-defined long term horizontal level. I looked at this cross after seeing the big GBPUSD reversal and GBPJPY short setup. The view here is ‘in line’ with a period of GBP underperformance.


Any reviews, news, research, analysis, prices or other information contained in this article is provided as general market commentary, does not constitute investment advice and may undergo changes from time to time. Trading the Financial and Currency Markets on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as to your favor. Before entering trading Financial and Currency Markets, you should carefully consider your investment objectives, level of experience and risk appetite. There is a possibility that you could sustain a loss of some or more of your initial investment and therefore you should not invest money which you cannot afford to lose. You should be aware of all the risks associated with Financial and Currency Markets trading, and in case you have any doubt, rather seek advice from an independent financial advisor. Scandinavian Capital Markets AB, its owners, employees, agents or affiliates do not give investment advice, therefore Scandinavian Capital Markets AB assumes no liability for any loss or damage, including without limitation to, any loss of profit, which may be suffered directly or indirectly from use of or reliance on such information. Scandinavian Capital Markets AB strongly encourages consultation with a licensed representative or financial advisor regarding any particular investment or use of any investment strategy.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.


GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more