It’s all about the pound on today’s canvas, as we play around with forex trade opportunities on GBP/USD and GBP/CHF. Check it out and see if you can make pips from them!
First up is a nice and simple trend play on Cable. As you can see, the pair is about ready to bounce from the 1.3150 handle that lines up with the 200 SMA and ascending channel support on the 1-hour time frame.
Buying at current levels would give you a good reward-to-risk ratio especially if the pair pops back up to the 1.3300 previous highs.
If you’re not convinced of the pound’s strength, however, then you could also wait until the bears get enough momentum to break below the support levels that we’re watching.
Whichever bias you choose to trade, make sure you’re trading as planned and are managing your risks! The goal is to stay alive to trade another day, ya hear?
A couple of days ago we identified a nice range resistance play on GBP/CHF’s daily time frame. And while the pair saw bearish pressure over the next couple of days, the bulls soon came back to (successfully) break the resistance.This time around, the pair is falling back after hitting resistance at 1.3300. Will it find support at the 1.3100 mark?
GBP/CHF is still a hundred or so pips away from the broken resistance level, so y’all have time to draft your trading plans if you’re seeing a resistance-turned-support possibility like I am.
A bounce from 1.3100 could push the pound back up to 1.3300. But if the bears manage to drag it back down to its previous range, then we could be looking at a move to the 1.2850 levels closer to the 100 and 200 SMAs.
Good luck and good trading, brothas!