Whether you like trading short-term trades or longer-term setups, I got yo back with a retracement play on Cable and a range support setup on NZD/USD. Check it out!
After falling down to the 1.3400 psychological handle, Cable looks ready for a bit of retracement.
The 1.3460 level is an area to watch, as it lines up with not only a 50% Fib retracement but also a support level from mid to late May. What’s more, it’s also near the 100 SMA on the 1-hour chart!
Think the pound will extend its losses against the Greenback? Shorting at the earliest signs of bearish pressure around the retracement is a good idea if you think that GBP/USD will make new lows this week.
If you’re one of them pound bulls, though, then you could also wait for the pair to break above the 100 and 200 SMAs and maybe aim for areas of interest nearer to 1.3600.
A few days ago we pinpointed .6850 as a range support that could hold (again). Well, it looks like some bulls hustled!
NZD/USD is now about 100 pips from the support, which is still far enough from the mid-range resistance near .7150 and the actual resistance near .7400. Stochastic has just jumped from the oversold region, so y’all could still have some space to place your long trades.
Buying at current levels could still get you a decent reward-to-risk ratio especially if you place your stops just below the range support. Don’t tighten your stops too much, though. Don’t forget that longer time frames like these could still show some volatility before it sees a clear price action!