Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
GBP/USD, USD/CAD & S&P 500 Technical Trade Setups

GBP/USD, USD/CAD & S&P 500 Technical Trade Setups

What's on this page

Short-term Trade Outlook: Technical Setups on GBP/USD, USD/CAD & S&P 500

  • GBP/USD range breakout pending – to determine outlook for correction off record lows
  • USD/CAD reversal off uptrend resistance threatens test of uptrend support
  • S&P 500 rebounds off key support- recovery levels in focus to offer reset

An update on technical setups we've been tracking in the British Pound, Canadian Dollar and the S&P 500. These are the targets and invalidation levels that matter heading into the close of the week. Review my latest Strategy Webinar for an in-depth breakdown of these technical setups and more.

British Pound Price Chart – GBPS/USD 240min


Chart Prepared by Michael Boutros, Technical Strategist; GBP/USD on Tradingview

Notes: In my last British Pound Short-term Outlook I noted that, “Sterling has set the weekly & monthly opening-range just below resistance at 1.1414/80- look for the breakout. From a trading standpoint, losses should be limited to 1.1120 IF price is heading higher on this stretch.” The setup remains unchanged with the weekly range re-enforcing the significance of a breakout of the 1.1120-1.1480 range for guidance in the days ahead. Ultimately, a topside breach may offer more favorable opportunities closer to downtrend resistance with a break / close below the October range-lows needed to mark resumption of the broader downtrend towards 1.0923 and the low-day close at 1.0679.

Bottom line: Looking for a breakout here for guidance with the threat for a larger recovery while within this near-term formation. A topside breach would threaten a larger recovery towards 1.1630/50 and 1.1843- both levels of interest for possible topside exhaustion IF reached. Keep in mind that a downside break of this pitchfork could likely fuel another accelerated sell-off – stay nimble here. Review my latest British Pound Weekly Forecast for a closer look at the longer-term GBP/USD technical trade levels.

British Pound Trader Sentiment - GBP/USD Price Chart

  • A summary of IG Client Sentiment shows traders are net-long the British Pound - the ratio stands at +1.22 (54.94% of traders are long) – typically weak bearish reading
  • Long positions are 2.10% higher than yesterday and 7.56% higher from last week
  • Short positions are 0.12% higher than yesterday and 11.14% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBP/USD-bearish contrarian trading bias from a sentiment standpoint.
GBP/USD Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 1% 0% 0%
Weekly 33% -25% 8%
Learn how shifts in GBP/USD retail positioning impact trend
Get My Guide

Canadian Dollar Price Chart – USD/CAD 120min


Chart Prepared by Michael Boutros, Technical Strategist; USD/CAD on Tradingview

Notes: Earlier this week, I highlighted a key resistance range in USD/CAD at 1.3812/55- a region defined by the 1.618% extension, the objective October monthly open and the April 2020 low. Price continues to trade within the confines of this newly-identified descending pitchfork formation with key support steady at 1.3632/51. A break below this threshold would threaten a larger correction within the confines of the broader uptrend with such a scenario exposing 1.3502/15- look for a larger reaction there IF reached for guidance. Ultimately, a topside breach / daily close above 1.3944/71 is needed to mark resumption towards subsequent resistance objectives into the 1.41-handle and beyond.

Bottom line: USD/CAD has responded to technical uptrend resistance and the threat remains for a corrective pullback while below 1.3812/55. A larger pullback here may offer more favorable opportunities closer to trend support with a topside breach needed to fuel the next leg higher in the US Dollar. Review my latest USD/CAD Weekly Price Outlook for a closer look at the longer-term Canadian Dollar technical trade levels.

S&P 500 Price Chart – SPX500 Daily

Chart Prepared by Michael Boutros, Technical Strategist; SPX500 on Tradingview

Notes: In last week’s S&P 500 Short-term Technical Outlook I highlighted the threat for a larger recovery in the index after rebounding off key technical support at 3482-3501- a region defined by the 50% retracement of the 2020 advance and the 1.618% Fibonacci extension. Price rebounded more than 7.8% off the lows with the advance faltering just above targeted resistance at the objective 2021 yearly open at 3734. Initial support now rests at 3660/64 with near-term bullish invalidation steady at 3590/96- a break / close below this threshold is needed to mark resumption of the broader downtrend towards 3482-3506 and the February 2020 high at 3397. Topside resistance eyed at 3810 and 3906/08- both represent areas of interest for possible topside exhaustion /price infection IF reached.

Bottom line: The S&P 500 rebound is maturing and while the focus remains constructive within this ascending formation, I’m on the lookout for possible exhaustion closer to downtrend resistance IF reached. Ultimately, a break below 3590 needed to fuel the next leg lower in the index. Review my last S&P 500 Weekly Technical Forecast for a closer look at the longer-term SPX 500 technical trade levels.

Equities Forecast
Equities Forecast
Recommended by Michael Boutros
Download Our Latest Quarterly Equity Forecasts!
Get My Guide

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

-Written by Michael Boutros, Technical Strategist with DailyFX

Follow Michael on Twitter @MBForex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.