It’s Friday the 13th, yo! See if you can get lucky with not one, but TWO pound-related opportunities on table today. Check it!
Trend warriors huddle up! GBP/NZD popped higher a few trading sessions ago and hit a ceiling around the 1.0350 handle.
What makes the resistance more interesting is that it lines up with a ceiling from late October to early November. Not only that, but it’s also just above a broken ascending channel on the 4-hour time frame!
Are we looking at a form of break-and-retest over here? The 100 SMA crossing below the 200 SMA certainly points to a potential reversal.Before you short GBP/NZD like there’s no tomorrow, though, you should note that, according to MarketMilk, GBP/NZD is still seeing “bullish” trends on the 4-hour AND daily charts.
You can short at the earliest signs of bearish momentum if you believe that GBP/NZD is in for a longer-term reversal.
If you think that GBP will extend its uptrend against NZD, though, then you can also buy the pair as soon as it makes new weekly highs.
Like in GBP/NZD, GBP/CAD also spiked higher in the last few trading sessions. The pair hit the 1.7800 major psychological handle before taking a breather!
But wait! Who else is seeing that 1.7800 lines up with a range resistance that hasn’t been broken since mid-2017? If you are, then congrats! You can definitely read a marked chart!
While it’s tempting to short at the range retest, you might want to check first how the pair reacts to the level. Are GBP bulls persistent enough to break through the barrier this time? Or will we see a bearish momentum as soon as the current candle closes?
Buying at a clear break above 1.7800 is a good idea if you think that the pound is destined for new multi-year highs against the Loonie.
If you’d rather trade the range, however, then you should at least wait for some momentum so you don’t get caught in a potential upside breakout.
Whichever bias you trade this week, make sure you’re practicing your best risk management moves when you execute them trading plans!