We’re lookin’ at the pound today, fellas! Get over the mid-week hump by trading these forex trade opportunities on GBP/JPY and GBP/NZD!
GBP/NZD looks like it’s about to bounce from the 1.8700 handle, which isn’t surprising since it lines up with an area of interest from all the way back in mid-May.
With stochastic chillin’ like a villain in overbought territory, you can bet yo momma’s homemade pie that pound bears are already looking to pounce on this one.
Shorting at current levels could give you neat reward-to-risk ratio especially if you aim for the previous lows near 1.8500. If you’re not confident on committing to a direction until the pair breaks above or below an ascending triangle, though, then you could also wait a couple more days until the pair sees a breakout before you jump in.
Whichever direction you favor, make sure you practice good risk management decisions when you do execute your trades, aight?
Remember that break and retest setup that we spotted a couple of days back? Well, it looks like GBP/JPY is finally seeing some retracement!
The pair is finding support at the 148.00 major psychological handle, which is also right smack at a 38.2% Fibonacci retracement and previous triangle resistance for Guppy.
Stochastic is flashing an oversold signal, so y’all better pay attention when the pair starts gaining bullish momentum. Buying at current levels is a good idea if you think that the pound will see a bounce against the yen over the next couple of days.
If you’re one of them pound bears, though, then you could also wait for GBP/JPY to break below our Fib retracement levels and aim for the previous lows nearer to 140.00. Just make sure you place wide stops when trading yen crosses like these!