The interesting aspect to the USD/CAD trade this week was CAD from Monday to Wednesday traded 1.3098 to 1.3160 or 62 pips while GBP/USD traded 219 pips from Monday to Wednesday.
While CAD remained a dead issue to trade in tiny ranges Wednesday, it alowed GBP/USD to completely reverse its 219 downside gains to trade back to almost its excact weekly entry point at 1.3062.
GBP/USD then offered another trade short from almost its exact weekly entry point from 1.3049 and 1.3062. If USD/CAD traded in its proper form as the exact opposite pips to GBP/USD then GBP/USD would've never traded back to its weekly entry point. GBP/USD would've traded to its target price at 1.2896 then reversed to our point at 1.2954 and remained in this trading vicinity for the remainder of the week.
its rare when 2 of the exact trades occur in the same week but it happens and when it does, its free money and an easy trade offered by the market. Normally, GBP/SD and USD/CAD trade in tandem as GBP/USD moves provide a check to USD/CAD or USD/CAD prevents GBP/USD from trading outside ranges or double trades.
GBP/USD close today is expected at 1.2942 while USD/CAD close is expected at 1.3242 and 1.3262. Not a terrific location for next week's trades however long USD/CAD and short GBP/USD will remain the order for next week. The lower for USD/CAD to close then the more pips will be earned next week. Conversely, the higher for the GBP/USD close then the more pips will be earned next week.
Long Anywhere or 1.3104 and 1.3100 to target 1.3341 Lows 1.3098, Highs 1.3259 trade runs +161 pips and target not yet achieved. Profit however is built into today's price as today's bottom is located at 1.3168. Note to entry long anywhere. Did an entry matter, only targets matter while entries are secondary to any trade.
Trading currencies and other financial instruments carries a degree of loss and possible loss of entire investments. Please managed your own risks, stop loss, and margins requirements.