It’s all about the pound on today’s canvas, as I bring to you neat short-term forex trade opportunities on GBP/USD and GBP/NZD. Get ’em while they’re hot, yo!
Yesterday we checked out a nice breakout on Cable’s daily time frame. But did you know that the pair was low key trading a short-term uptrend then?
That’s right! GBP/USD is being supported by a rising trend line, which currently lines up with not only a 50% Fib retracement and 1.3500 psychological handle, but also the 100 SMA on the 1-hour time frame. The cherry on top of the setup is a bullish divergence on the chart.
Buying at current levels could get you a nice reward-to-risk ratio especially if you aim for the previous highs near 1.3600 and place your stops just below the trend line. Just gotta watch it closely in case we see a downside breakout in the next couple of trading sessions!
GBP/NZD might have broken above a falling trend line earlier this week, but it has eventually found resistance below 1.9200 and is now back below 1.9100.
What makes the setup interesting this time around is that the pair is now back below the 1.9100 mark and is flirting with the broken trend line area. And with stochastic just leaving oversold territory, you can bet that other bulls are watching this one, too.
Will the pound bounce higher against Kiwi? A break above the 1.9200 previous highs could pave the way for a retest of the area of interest near 1.9400. Just make sure you keep your stops wide with this one, aight? Don’t forget that currency crosses tend to see more volatility than the majors!