We’re starting off with a nice and simple support play on GBP/JPY. The pair is having trouble breaking below the 159.50 levels, which is understandable as it has been serving as support since the start of the month. This time around Stochastic is also on the bulls’ side with an almost overbought signal. Think the pound is about to jump against the yen? A long trade at current levels could give you a good reward-to-risk ratio especially if you aim for the previous highs. Just make sure you leave enough room for yen volatility when you put up your orders!
Trend-catchers huddle up! GBP/NZD is currently lollygagging at the 2.1000 area, which lines up nicely with a rising channel support on the 1-hour time frame. Not only that, but Stochastic is also in the oversold region. You could buy at current levels if you think that the pound is set for another bounce against the Kiwi, but you could also wait for a break below the support levels if you’re one of them pound bears.
Here’s one for range traders out there! EUR/GBP is consolidating at the .7900 major psychological handle (MaPs), a resistance level that hasn’t been broken this year. Also, Stochastic is popping up a sell signal in the overbought territory. Will the resistance hold for another day? Or will the bulls step in and finally push the pair to new yearly highs? Read up on trading ranges if you haven’t tried it yet!
Forex Chart Settings:
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.