Welcome to a brand spankin’ new trading month! Hit the ground running with these hot long-term pound setups!
Trend warriors huddle up! GBP/CAD is consolidating at the 1.6800 major psychological level, which is right smack at a 50% Fibonacci retracement level on the daily time frame.
What makes the level even more interesting is that it has been an area of interest for the pair since July 2016. Not only that, but it also looks like the 100 SMA has just crossed above the 200 SMA!
Think the pound will bounce higher against the Loonie? You can afford to wait for a bounce especially since an upside momentum could take the pair back to its 1.7800 highs. That’s 1,000 pips, yo!
If you’re not feelin’ any love for the pound, though, then you could also wait for the pair to break said support levels and trade a downside breakout instead.
If comdoll trading ain’t your thing, then here’s one for ya! GBP/CHF is testing a neckline of what looks like a double bottom on the daily chart.As you can see on the chart, the “bottoms” are right at the 1.2300 range support that hasn’t been broken since November last year.
Before you buy the pair like there’s no tomorrow, though, you should also take note that the 100 SMA has just crossed below the SMA, right when stochastic is about to hit the overbought territory.
A break above the “neckline” near 1.2300 could take the pair to the 1.2700 mid-range resistance, if not the long-term resistance near 1.3000.
But if the bears win a downside break in the next couple of days, then watch out for a trip back down to the 1.2000 previous support. Watch this one closely, will ya?