It’s all about the pound on today’s canvas, as I bring to you forex trade opportunities on Cable and Guppy. Get ’em while they’re hot!
Remember that channel that we were lookin’ at a couple of days back? Well, it’s shaping up to be a descending triangle after all! Cable is not lollygagging just below the 1.3400 MaPs, which is near the 100 and 200 SMAs AND is below the triangle’s resistance.
With stochastic chillin’ like a villain on overbought territory, you can bet your pips (with proper risk management, of course) that bulls and bears are already watching this one.
Will the pound break above the trend line that has been solid since late November? Or will the bears drag the pair to new December lows? Watch this one closely, brothas!
Dollar trading not your thing? Here’s a currency cross for ya! GBP/JPY is fast approaching the 151.25 level, which is right smack at a falling channel resistance on the 1-hour time frame.
What makes the setup even more interesting is that 151.25 has been serving as resistance and area of interest for most of December. What’s more, stochastic is now flashing an overbought signal!
A short trade around current levels could get you a good reward-to-risk ratio especially if you place your stops just above the channel and aim for the previous lows near 149.00.
If you think that the pound will see an upside breakout, though, then you could also wait for solid candles above the channel and aim for December’s highs near the 153.00 MaPs.
Whichever bias you choose to trade, remember to keep your stops wide, aight? After all, currency crosses like these can see volatility like nobody’s business!