We’re lookin’ at pullbacks and breakouts today, forex brothas! Take a look at GBP/USD and AUD/NZD’s charts and see if you can make pips from the setups.
After breaking above a rising channel resistance last week, GBP/USD is now back at the 1.3315 area. And as you can see, the level marks an area of interest that lines up with a previous resistance as well as the 100 SMA on the 1-hour time frame.
With stochastic hitting oversold again, you can bet your pips (with proper risk management, of course) that other traders are already watching this one.
Buying at current levels and placing stops just below the 100 SMA would get you a good reward-to-risk ratio if you think the pound will go on to make a steeper uptrend. Just watch it closely for signs that the pair is willing to make new highs, aight?
Breakout alert! While the long-term uptrend that we spotted a couple of days back has worked perfectly, recent price action suggests that the Aussie might be running out of steam against Kiwi.
See, AUD/NZD is now trading below 1.1000, which means that it has broken below the rising channel that we’re looking at.
If the pair goes on to make new monthly lows, then y’all might want to watch out for the 1.0850 handle, which marks a pretty major area of interest for the pair.
If you believe that we’re looking at a fakeout, though, then you could also wait for the pair to trade within the channel again and aim for the 1.1250 – 1.1350 levels instead.
Whichever strategy you choose, make sure you practice tight risk management decisions, aight? Gotta lock ’em pips tight before the year ends, after all!