It’s all about the pound on today’s canvas, as we play around with forex trade opportunities on GBP/JPY and EUR/GBP. Get ’em while they’re hot!
Where my range-trading brothers at? EUR/GBP is about to hit the .8850 minor psychological level, which is right around the 200 SMA and a long-term mid-range support on the daily time frame.
What makes the setup more interesting is that stochastic is also about to hit oversold status. Think this means anything for the bulls?
A long trade at the earliest signs of a bounce from the mid-range support could get you a pip or two (or 150) if the pair ends up poppin’ back up to its .9000 area of interest.
If you think that the euro will see more losses against the pound and even hit its .8700 range support, however, then you could also wait for a retest before you place any long orders.
Whichever bias you choose to trade, make sure you’re using good risk management habits when you’re executing your plans, aight?
I spy with my cool, brown eyes a support-turned-resistance situation in the making!
GBP/JPY is having trouble breaking above the 140.50 handle, which isn’t surprising since it lines up with a 50% Fibonacci retracement AND a support from back in August 2018.
Will the bears soon take over the reins and extend the pound’s losses against the yen? Or will the bulls get enough support to prop it back up to the 145.00 area?
Keep close tabs and this one in case we see some action in the next couple of trading sessions!