Breakout alert! GBP/USD is currently testing the 1.2500 major psychological handle, which is right smack at a falling trend line resistance that’s part of a possible symmetrical triangle. What makes the setup more interesting is is that it’s near the 100 SMA on the daily chart just as stochastic is about to hit the overbought territory. Will pound bulls have enough muscle to push the pound back to its previous highs? Or will bears pounce at the bearish signals and drag it back down to the 1.2400 support? Watch this one closely, fellas!
Here’s one for trend playas out there! EUR/GBP looks like it’s about to retest a major area of interest around the .8400 major psychological handle. This time around, the handle also lines up with not only a long-term rising trend line that hasn’t been broken since November 2015, but also the 200 SMA on the daily chart. Buying around the trend line support is a good idea if you think that the euro will resume its uptrend against the pound. But if you think that the euro has more cause to decline, then you might want to whip up your trading plans and prepare for a possible downside breakout in the next couple of days. In any case, make sure you practice good risk management habits when executing your trade ideas!
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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.