Remember that downtrend that we spotted a few days back? Well, it looks like the bears have made pips rain after all!Cable is knocking on the 1.2800 major psychological handle, which lines right up with a broken channel support on the 4-hour time frame.
Are the bears angling for a support-turned-resistance play? GBP/USD is still lollygagging around the area, but the wicks on the chart make the setup promising for the bears.
Shorting at the first signs of selling would make for a good trade especially if you believe that the pound would sink lower than its 1.2750 February lows.
But if you think that the pound can still go back to its channel or at least retest the 100 and 200 SMA levels before the bears step in, then you can also place small positions as soon as GBP/USD makes new March highs and bail when there’s selling pressure.
Here’s one for the long-term traders out there! NZD/USD is having trouble making new lows below .6250, which isn’t surprising since the level has been a solid support for the pair since 2015. Now that’s commitment!Is third time the charm for the bears? MarketMilk is still big time “bearish” on NZD/USD’s daily time frame so it’s possible that the current selloff could still persist.
Breakout traders can short NZD/USD as soon as it breaks its long-term support. You can check out NZD/USD’s volatility analysis if you want to increase your odds in placing your stop and profit targets.
If you think that .6250 will hold for another day, however, then you can also buy the pair at the first signs of bullish momentum and aim for previous areas of interest such as .6425 or .6500.