Cable is trading just above 1.1600 after finding support at 1.1500 twice in the last few days.
Do you know what happens if a pair bounces TWICE from a level?
We get a lot of sellers who have learned their lesson.In this case, we also get a double bottom pattern with the “neckline” at the 1.1800 levels.
Since GBP/USD is still about 200 pips away from a neckline retest, y’all still have time to whip up a trading plan for this setup.
Buying at a clear break above 1.1800 would yield a good reward-to-risk ratio especially if you aim for the 1.2000, 1.2400, and 1.2700 previous areas of interest.
Not a fan of the pound? You can also short at the 1.1800 neckline if GBP/USD fails to break higher or short at the first signs of bearish momentum and then aim for the pair’s March lows.
USD/JPY is about to hit 112.00, a level that bulls haven’t broken through since December 2018.What makes the setup interesting today is that we’re already seeing dojis even before a retest, and that stochastic is already chillin’ like a villain in the overbought territory.
Are dollar bulls game for more domination? A break above 112.00 could push USD/JPY to previous areas of interest like 114.00 or 115.00 before seeing some retracement.
Think the dollar is about to run out of steam? You can wait and see how USD/JPY finishes its current consolidation and consider targeting its previous lows (1,000 pips away!) if it looks like the bears are coming out to play.
Whichever bias you choose to trade, make sure you manage your risk like a champ, aight?