It’s all about the pound on today’s canvas, as we play around with forex trade opportunities on GBP/USD and EUR/GBP. Get ’em while they’re hot!
First up is a nice and simple downtrend on Cable. As you can see, the pair is having trouble trading above the 1.2650 handle that also marks a mid-channel resistance on the 4-hour time frame.
Will the bears pounce at the level? Or will the bulls push the pound to the 1.2700 channel resistance near the 100 and 200 SMAs before they give control to the bears?
Watch this one closely and make sure y’all have your trading plans ready in case the bears get their momentum back!
Fakeout alert! EUR/GBP is having trouble making new monthly highs after breaking above the .9000 major psychological handle and range resistance on the daily time frame.
Stochastic is flashing an overbought signal, so it’s still possible for the bears to drag the euro back to its .8900 or .8700 previous support areas.
If you think that the “fakeout” is actually a legit breakout that’s just getting its legs, though, then you could also place your long trades above this month’s highs and aim for the areas of interest near .9200 or .9300.
What do you think? Are we looking at a breakout or a fakeout?