It’s all about the pound on today’s canvas, as we play around with forex trade opportunities on GBP/JPY and GBP/AUD. Check it!
First up is a nice and simple trend on GBP/AUD. As you can see, the pair is about 100 pips from the 1.7500 handle that marks a mid-channel line on the daily time frame.
Think the pound is in for more gains against the Aussie? A long trade at current levels could still get you a nice reward-to-risk ratio especially if the pair ends up retesting its previous highs near 1.8450.
Just make sure y’all use wide stops when trading this one, aight? Remember that currency crosses like these tend to see higher volatility than the majors!
Remember that triangle play that we spotted a couple of days back? Well, it’s now time for the bulls to flex some muscles!
GBP/JPY is hanging around the 145.00 major psychological area, which is right around an ascending triangle support on the daily time frame.
The pair has yet to show bullish momentum, but, if the pound does bounce higher, then we might see a move back up to the triangle resistance near 149.00.
If you’re one of them pound bears and would rather buy the yen against the pound, then you might want to wait for a break below the trend line before executing your short orders.
Just make sure you don’t get caught in a fakeout, aight?