Who’s up for trading trends today? I hope you are, because these forex trade opportunities on GBP/USD and NZD/USD are too good to miss!
First up is a nice and simple channel play on Cable. The pair is lollygagging just above the 1.3100 psychological level, which is right around the 100 and 200 SMAs AND the falling channel resistance on the 1-hour time frame.
Shorting at the earliest signs of bearish momentum is a good idea if you think that the pound will drop below the 1.3000 levels.
If you’re one of them pound bulls, though, then you could also wait for a break above the resistance levels that we’ve spotted and trade an upside breakout instead.
Whichever bias you choose to trade, make sure you follow your trading plans when you execute, aight?
NZD/USD is no stranger to continuation patterns since it has just followed a bearish flag breakout back in early June.
But is the pair ready to extend its downtrend? See, NZD/USD is forming what looks like a bearish pennant on the 4-hour chart while the 100 and 200 SMAs are keeping the bulls in check.
NZD/USD has yet to see a breakout in either direction, so y’all still have time to whip up your trading plans.
Just remember that not all pennants/triangles end up being continuation patterns, so make sure you have contingency plans for any and all chart scenarios!