It’s April 20 and you know what that means – it’s Friday, yo! Get your last minute orders in with these hot trend plays on GBP/USD and EUR/CAD!
It’s make or break for Cable! GBP/USD is lollygagging around the 1.4100 major psychological handle, which is right smack at a channel support AND the 200 SMA on the 4-hour chart.
With stochastic chillin’ like a villain in oversold territory, you can bet that other bulls (and bears?) are already waiting to see if the support will hold.
Buying at current levels could get you a nice reward-to-risk ratio especially if you aim for the previous highs near 1.4400.
If you’re not sold that the pound would continue its uptrend, however, then you could also wait for a break below the 200 SMA before you whip up your breakout plays.
Remember that 50% Fib retracement area that we identified a couple of days back? Well, it looks like the bears DID have trouble finding momentum around the level! Question is, can the bulls get a momentum of their own?
The pair has bounced by about 150 pips since the 50% Fib, but a long trade at current levels is still a good idea if you believe that the euro will clock in more gains against the Loonie and go back to its previous highs near 1.6100.
If you’re one of them euro bears or Loonie bulls, though, then you could also wait for the pair to make new April lows and trade a possible dip down to the trend line and 200 SMA support near the 1.5350 levels.
Whichever bias you choose to trade, make sure you practice good risk management when you execute your trading plans!