GBP/USD looks ready to extend its downtrend after hitting resistance at a mid-channel level on the 4-hour time frame. What’s more, it’s now trading below its 100 SMA!
Is it time for bears to go back to partying? Shorting at a break below yesterday’s lows would still give you a good reward-to-risk ratio especially if you place your stops just above this week’s highs and aim for new November lows.
Before you sell like there’s no tomorrow, though, you should know that Cable has gained 6.18% in the last three months and is up by 1.81% from a month ago.
Unless you’re confident that GBP/USD can sustain its 4-hour downtrend, then you might want to wait for a bit more momentum or wait to sell at a higher price.
Breakout traders huddle up! NZD/JPY is currently trading above its 100 daily SMA and just might break above a trend line that’s been solid since March.
Meanwhile, NZD/JPY’s MarketMilk trend profile is showing that SMAs and EMAs, as well as short-term trend indicators are flashing “bullish” signals. Not only that, but its long-term trend is now on “bearish but possibly weakening” status!
Buying at a close above October’s highs will provide you a good entry if NZD/JPY does break above the trend line. Just watch out for potential bearish momentum around the 61.8% Fib and 200 SMA!
Not confident about trading an actual breakout? You can also buy at a retest provided that NZD/JPY drops back to the trend line.
Not convinced that NZD/JPY is ready for an uptrend? The pair’s current levels provide the best reward-to-risk ratio at the moment if you’re betting on Kiwi dropping back to its August lows against the yen.
Good luck and good trading, everyone!