Fib alert! GBP/JPY is having trouble breaking above the 153.50 minor psychological handle, which is right smack at a 38.2% Fib and the pair’s support area back in April. Not only that, but stochastic is also flashing an overbought signal. Will these signals spell trouble for the pound? A short trade at current levels could get you a good reward-to-risk ratio especially if you place your stops above the Fibs and aim for the previous lows. Just remember to keep your stops wide, aight?
Here’s one for the countertrend traders out there! EUR/CAD is lollygagging at the 1.4500 handle, which lines up with the pair’s mid-channel support on the 4-hour time frame. What’s more, stochastic is about to hit the oversold territory. Think the euro will bounce higher against the Loonie? Buying at current levels is a good idea if you’re one of them euro bulls, but you can also wait for the pair to retest the falling channel’s resistance and shoot for a short trade instead if you prefer better reward-to-risk opportunities.
Here’s another one for my trend-trading friends! Cable is currently testing the 1.4650 psychological handle, which hits the falling trend line resistance on the daily chart. Oh, and look at that 200 SMA keeping the bulls in check! Shorting at market could make for a good trade if you think that the pound bulls are done with their hustling for now. Just make sure you practice good risk management, aight? I hear from Pip Diddy and Forex Gump that this pair is about to see some action…
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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.