I’m seeing a lot of pullbacks today, brothas. See if you can take advantage of GBP/USD and CHF/JPY’s charts and get some pips off of them hot setups!
Cable has found a bottom around the 1.2700 handle and is now heading fast towards the 1.3000 major psychological handle.
What makes the level more interesting is that it’s also near an area of interest that lines up with a 61.8% Fib retracement, falling trend line resistance, and the 200 SMA on the 4-hour chart.
Shorting at 1.3000 could get you a good reward-to-risk ratio especially if you place your stops just above the trend line and aim for the 1.2700 previous lows. Just make sure you’re ready to switch biases in case we see a breakout above the trend line!
The bulls and bears are in a major tug-o-pip around the 112.00 psychological handle that has been a serious area of interest for CHF/JPY since early June.
A break above the level would take the pair above the SMAs and put it back inside a rising channel that was only broken earlier this month.
If the bears hold the 112.00 fort, however, then we might see CHF/JPY drop back down to 110.80 or even the areas of interest near 110.30 and 109.50.
Watch this one closely, will ya?