With a lot of my forex brothas heading out for a long weekend, I thought y’all might appreciate trading shorter time frames. Here are trend plays that I spotted on GBP/USD and NZD/USD!
First up is an easy peasy downtrend opportunity on NZD/USD. The pair has just bounced from the .6970 area, which was right smack at a falling channel resistance AND 100 SMA levels that hadn’t been broken since late March.
With stochastic still flashing overbought levels, I’m thinking this move still has momentum going for it. Stops above the channel could give you a sweet reward-to-risk ratios especially if you aim for the previous lows near .6925 or even make new lows this month.
Remember that symmetrical triangle we spotted a couple of days back? Well, it looks like GBP/USD broke lower after all!
Right now, the pair is consolidating around the 1.2425 area after bouncing from its 1.2375 lows. And as you can see, the level lines up nicely with a 38.2% Fib retracement opportunity on the 1-hour time frame.
What makes its current situation more interesting is that pound bears could also be looking to short around 1.2450, which is closer to the broken triangle resistance and the SMAs on the chart. But with stochastic already near the overbought territory, other bears might settle with the pound’s current levels.
What do you think?