It’s all about the pound on today’s canvas, as I bring to you hot long-term forex trade opportunities on EUR/GBP and GBP/NZD!
Remember that breakout setup that we spotted a couple of days back? Well, it looks like we could be in for a break-and retest setup in the making!
EUR/GBP just dipped back to the .8750 area after popping up to .8850 last week. If you look at the daily time frame, you can see that the retracement lines up nicely with a broken resistance level and area of interest. Think the euro is about to go back up against the pound?
Aggressive euro bulls could buy at current levels and place stops just below the previous resistance level. If you’re one of them conservative traders, though, then you could also wait for the pair to actually make new highs before placing any long trades.
If you feel like buying the pound instead, then this one is for you! GBP/NZD is having trouble breaking below the 1.7600 major psychological handle, which isn’t surprising since it’s right smack at a rising channel support on the daily time frame.The SMA crossover on the chart isn’t hurting the bulls’ cause either. But the cherry on top of this sweet setup is a bullish divergence that’s about to leave the oversold territory.
Buying at current levels could give you a good reward-to-risk ratio especially if you aim for the 2017 highs near 1.9000. But if you’re not comfortable buying the pound against the Kiwi, then you could also wait for the pair to break lower and maybe retrace to confirm a breakout move.