Cable is chillin’ like a villain at the 1.3000 major psychological handle, which is already interesting even BEFORE we also note that the MaPs is also around a 200 SMA retest on the 4-hour time frame.
The cherry on top of this sweet setup is MarketMilk signaling that although GBP/USD is “bearish” on the short-term indicators on the DAILY time frame, longer-term indicators still point to a “bullish” trend.
Buying at the first signs of bullish pressure would give you a good reward-to-risk ratio especially if Cable pops back up to its 1.3500 December highs.
Not feelin’ the love for the pound these days? You might want to wait until GBP/USD makes a clean break below the 1.2800 support before you execute your short orders. If it does break lower, then the 1.2550 previous area of interest would make for a good profit target.
Here’s one for the range traders out there!
CAD/JPY is having trouble making new highs above 83.25, which is understandable since the area lines up with a range resistance that has been keeping the bulls in check since July.
What makes the chart more interesting today is that both Stochastic and Williams %R are signaling CAD/JPY’s “overbought” conditions on the daily time frame.
Think the Loonie is in for another bearish run against the yen? Shorting at current levels would make for a sweet trade especially if you place your stops just above the range and target mid-range and full-range support levels near 81.50 and 80.00.
If you believe that CAD/JPY’s consolidation is a sign of a longer-term reversal, however, then you can also wait for the pair to trade above the range resistance and trade an upside breakout instead.
Watch how the pair reacts to its current levels and make sure you practice good risk management decisions no matter which bias you choose to trade in this setup!