As you can see on the chart above, Cable got rejected at the 1.2100 major psychological handle, and is now trading around the 1.2200 zone. The level lines up with a 38.2% Fib retracement as well as a previous support, so you can bet your neighbor’s cat that a few pound bears are waiting to pounce. If you’re one of them conservative traders though, then you could also wait for the pair to hit the 1.2300 mark, which is closer to the 100 SMA, 61.8% Fib, and falling trend line resistance on the 1-hour time frame. Stops above the trend line could get you a pretty sweet deal especially if you believe that the pound will make new lows against the Greenback in the next couple of days.
If you’re not feelin’ any love for the Greenback, then this setup should set you up for the day! NZD/USD just broke above the 1.7050 mark, which has served as resistance to an ascending triangle earlier this month. Are we looking at a potential resistance-turned-support situation over here? Breakout traders can start scaling in at current prices while more conservative traders can wait for a pullback around the broken resistance area. For profit targets, consider the .7100 area, which is an area of interest on the shorter time frames, or the .7200 mark, which is right smack at the pair’s previous highs.
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