Who’s up for trading the pound today? I hope you are, because I’ve got hot short AND long-term forex setups on GBP/USD and EUR/GBP that you wouldn’t want to miss!
After testing the 1.3300 major psychological handle earlier this week, GBP/USD has since calmed down and is now trading around the 1.3250 area.
What makes the retracement interesting is that it lines up with a retest of the falling channel resistance that we spotted a couple of days back. Not only that, but stochastic is also flashing an oversold signal, which could attract more bulls into the picture.
Think Cable will soon see a bounce? Buying at current levels is a good idea if you think that the pound will set new weekly highs against the Greenback.
Just make sure you practice good risk management when you do execute your trades. Word around the hood is that there are catalysts ahead that might affect GBP/USD’s volatility!
I spy with my cool, bedroom eyes a hammer on EUR/GBP’s daily chart! As you can see, the candlestick popped up right at the .8850 area that’s been serving as support AND resistance for the pair since December last year. What’s more, it’s also being supported by the 200 SMA!
With a bullish divergence also popping up on the chart, you can bet your pips that other long-term playas are watching this one too. Buying at current levels would get you a good reward-to-risk ratio especially if you aim for the August highs near .9300.
If you’re not feelin’ the love for the euro, though, then you could also wait for the pair to break the area of interest.
But whichever direction you choose, make sure you put wide stops, aight? After all, crosses like these (especially on longer time frames) tend to see crazier volatility than the majors!