Whether you like day trading or you’re more into swing trading, I got yo back with a trend play on NZD/JPY and a potential breakout for GBP/USD. Check ’em out, brothas!
First up is a nice and simple trend play on NZD/JPY. As you can see, the pair is lollygagging just above the 79.50 mark, which lines up with a rising trend line AND the 200 SMA on the 1-hour time frame.
Will bulls pay attention to the hint of bullish divergence and push Kiwi higher against the yen? Buying at current levels could get you a decent reward-to-risk ratio especially if you believe that NZD/JPY will hit new highs this week.
If you’re not a fan of Kiwi, though, then you could also wait for a break below the trend line and trade a breakout instead. Just keep your stops pretty wide, aight? Remember that currency crosses like these tend to be more volatile than the majors, so NZD/JPY could still trade a bit below the trend line before seeing a bounce!
Breakout alert! GBP/USD has just broken above what looks like a symmetrical triangle on the daily time frame and is testing its September highs near 1.3600.
A convincing break above the psychological handle would open up a move to the mid-2016 support near 1.4100. That’s about 500 pips away, yo!
Before you buy the pair like there’s no tomorrow, take note that we could always see a break-and-retest situation or even a bit of profit-taking around the major psychological handles before we see a clear trend. Just make sure y’all are around when we do see a steeper uptrend!