Welcome to the last trading day of the week, yo! Today we’re looking at not one, but TWO Fibonacci retracement opportunities on GBP/USD and AUD/USD’s 1-hour time frames. Check these out!
Cable is currently trading around the 1.4180 area, which is about 150 pips from the 1.4330 resistance that it hit yesterday.
What makes the chart interesting is that it’s showing a possible “bounce” from the 1.4100 psychological handle that lines up with not only a 50% Fib retracement, but also a previous rising channel resistance on the 1-hour chart.
With stochastic chillin’ in oversold territory, you can bet that the bulls are watching this one closely. A long trade at current levels could give you a good reward-to-risk ratio especially if you aim for previous highs and place your stops just below the 100 SMA.
Watch this one closely, will ya?
Much like the setup above, AUD/USD is also sporting a neat Fib play on the 1-hour time frame.
As you can see, it just bounced from the .8000 major psychological handle, which is right smack at a 61.8% Fib retracement, 100 SMA, previous resistance, AND a rising trend line support. Talk about the stars lining up!
Stochastic hasn’t quite left oversold status, so y’all might have some room to jump in on the uptrend if you believe that the Aussie will make new 2018 highs against the Greenback.
If you’re no fan of the Aussie, though, then you could also wait for a break below the trend line that hasn’t been broken since the start of the month and trade a downside breakout instead.