We’re more than halfway into the week, brothas! If you’re up to short-term trend plays, then I’ve got not one, but two hot ones for ya on GBP/USD and NZD/USD. Check it!
Cable is lollygagging at the 1.3200 major psychological handle, which isn’t surprising since the MaPs has served as resistance for the pair a couple of days ago.
If you’ll notice, 1.3200 also lines up with a trend line that has been serving as resistance AND support for the pair since late August. The cherry on top of this sweet setup is an oversold stochastic signal.
Think the pound will gain more pips on the scrilla? Buying at current levels could get you a sweet reward-to-risk ratio especially if you place your stops just below the trend line.
If you’re one of them dollar bulls, though, then you could also wait for the pair to break said trend line and maybe aim for the 200 SM levels near 1.3100. Whichever bias you take, make sure you got your trading plans locked in tight before placing any orders!
Here’s one for the comdoll playas out there! NZD/USD just bounced from the .7225 levels, which is right smack at a rising channel AND 200 SMA support on the 1-hour charts.
Are we looking at a simple uptrend bounce over here? Stochastic has already left oversold territory, so the bulls would have to work a lil’ harder to sustain their momentum.
Buying at current levels and aiming for the previous highs near .7325 could still get you a decent enough reward-to-risk ratio especially with stops just below the 200 SMA. Just remember to manage your risks, aight?