I’m serving up hot trend and breakout setups on GBP/JPY and AUD/NZD today, brothas. Get ’em while they’re hot!
GBP/JPY: 4-hour
First up is a nice and simple trend play on Guppy. As you can see, the pair is finding support just below the 145.50 psychological handle that happens to line up with a rising channel support.
What makes the setup more interesting is that stochastic is flashing an oversold signal right when the pair is forming what looks like a bullish divergence on the 4-hour time frame.
A long trade at the earliest signs of bullish momentum could get you a decent reward-to-risk ratio especially if you aim for the previous highs near 149.00 and place your stops just below the channel.
Just remember to manage your risks, aight?
AUD/NZD: 4-hour
Breakout alert! AUD/NZD looks like it just broke above a falling channel that had been limiting the pair since early July.
A break above the 1.0980 previous highs could take the pair all the way to 1.1000 or 1.1050 depending on momentum.
If you believe we’re seeing a fakeout, though, then you could also wait for the pair to drop back down to the channel and aim for the 1.0850 previous lows instead.
Forex Chart Settings:
Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line
