Welcome to the last trading day of the week, brothas! Let’s set you up with these hot 1-hour setups on GBP/USD and NZD/USD!
Starting up is a nice and simple trend trade on Cable. The pair had trouble breaking below the 1.3100 major psychological level, which isn’t surprising since the level lines up with not only the 200 SMA but also the rising channel support on the 1-hour time frame.
Will pound bulls take advantage of the support and push the currency higher? A bounce from current levels could take the pair back to its previous highs near 1.3275.
If you’re one of them pound bears, though, then you could also wait for a downside break and aim for the area of interest around 1.3050. Whichever bias you choose, make sure you practice good risk management when you execute your trades!
NZD/USD is flirting with the .7450 handle, which is right smack at a 38.2% Fib retracement on the 1-hour time frame. What makes the setup even more interesting is that the level also lines up with a broken rising trend line AND is just below an SMA crossover. The cherry on top of this sweet setup is an overbought stochastic signal.
Think NZD/USD is starting a downtrend? A bounce lower from the current consolidation could signal a support-turned-resistance situation that could drag the pair down to its .7400 previous lows or .7350 area of interest.
On the other hand, a break above the rising trend line could mean that we’re actually looking at a fakeout. In this case, the pair could go back to its previous highs near .7500 – .7550.