Can Cable keep climbing? It appears that pound bulls are getting exhausted, as the pair could make another test of the rising trend line on its 4-hour forex time frame. Stochastic is indicating oversold conditions, which means that another bounce could take place. However, price has formed lower highs recently, suggesting that the uptrend is weakening. A strong break below the trend line could be a sign that a reversal is in the cards!
Decision time for Guppy! The pair has been consolidating in the middle of its range for a few days already, but it might be ready to pick a direction sooner or later. An upside break could mean a rally up to the range resistance at the 173.00 major psychological level while a downside break could mean a drop to support near 170.00. Take note though that a bearish divergence, with higher highs for stochastic and lower highs for price, has formed. Better wait for stochastic to head lower if you’re planning to short.
Who’s up for a countertrend trade? GBP/NZD has been trading inside an ascending trend channel for almost a couple of months already, but it looks like the rallies are about to turn now that the pair is gearing up to test the channel resistance. A selloff from the 1.9800 major psychological level could last until the bottom of the channel near the 1.9500 mark. Stochastic is heading lower, which means that sellers are still in the game, but the tide could turn once the oscillator reaches the oversold zone.
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