I hope you’re in the mood to trade short-term trades today, because we’re talking 1-hour charts on GBP/USD and AUD/NZD today. Get ’em while they’re hot!
First up is a nice and simple trend trade on Cable. As you can see, the pair is having trouble breaking above the 1.3280 handle, which is near the falling channel resistance on the 1-hour chart.
Stochastic is chillin’ like a villain on the overbought territory, so other pound bears might be on to this downtrend as well. Shorting at the earliest signs of bearish momentum could get you decent pips especially if you aim for the previous lows near 1.3050.
If you’re one of them pound bulls, though, then you could also wait for an upside breakout and look for a move up to the 1.3400 major handle for a good reward-to-risk ratio.
Whichever bias you choose to trade, make sure you practice good risk management, aight?
AUD/NZD is sporting what looks like a rising wedge in the making.
The School of Pipsology tells us that breakouts of wedges like this could be as strong as the length of the base of the wedge. In this case, we’re looking at about 100 pips or so.
Before you sell like there’s no tomorrow, however, take note that the 100 SMA has also just crossed above the 200 SMA. That means there’s a chance that we’re looking at the early stages of a reversal!
There’s time yet before we see a “breakout,” so y’all might want to watch this one closely to see which direction it will go. Just make sure you’re ready with your trading plans in case we do start to see action!