Earlier this week I showed you guys how EUR/GBP has bounced from a support on the WEEKLY time frame.
If waiting is not your game, though, then you might be interested to know that it’s now approaching a relatively shorter-term range support on the 4-hour chart.
.8475 marks the spot in this case, as the level has kept the bears at bay at least twice since mid-December. Can the bulls defend the level again this week?
EUR/GBP is still about 30 pips away from an actual retest, so you still have time to draw your trading plans if you’re planning on playing this one. Buying at the first signs of bullish momentum after a retest would give you a good reward-to-risk ratio especially if the pair pops back up to its .8575 previous resistance.
Feel like the euro will extend its losses against the pound instead? You might want to wait for a clear break below the range support before you execute them short trades.
Good luck and good trading, yo!
Remember that break-and-retest scenario that we spotted a few days back? Well, it looks like things are shaping up!
NZD/USD might not have hit the 38.2% Fib that we were eyeing, but it did find support at the .6600 major psychological handle.
The previous highs near .6750 is the first legit profit target if you think that this IS a break-and-retest situation.
If you believe that December’s upside breakout is just a fakeout and that NZD/USD will actually extend its downtrend, however, then you can also wait for the pair to trade well below the trend line and the 200 SMA before you open short positions.
Whichever bias you choose to trade, make sure you manage your risks and that you follow your trading plan!