First up is a nice and simple trend play on Cable’s 1-hour chart. The pair got rejected at the 1.2500 major psychological handle, which is also right smack at a falling channel resistance. What makes the bounce more interesting is that it was also near the 100 and 200 SMAs on the 1-hour time frame. Oh, and check out stochastic chillin’ like a villain on the overbought territory! Selling the pound at current levels could get you a sweet deal especially if you aim for the previous lows. Just make sure you don’t put your stops too close to current prices, aight? The pair is no stranger to fakeouts, after all. Just take a look at the chart above!
If you don’t feel like shorting the pound these days, then this should set you up. See, Guppy is trading in what looks like a bullish pennant on the 4-hour chart. If you’ve read the School of Pipsology, then you’ll know that patterns like these tend to signal continuation for a trend. A break above the 143.00 MaPs could lead to a move to 156.00 or even 163.00. Before you buy GBP/JPY like there’s no tomorrow though, make sure you’ve got your trading plan in place and potential scenarios mapped out. Gotta practice good risk management habits, right?
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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.