How’s it going, forex warriors!
Think you can catch pips from these setups?
GBP/USD juuust hit the 1.2275 region, which is right smack at a level that had served as resistance at least twice since mid-May.Can the bears defend the level for another day?
Shorting at the first signs of bearish pressure would give you the best reward-to-risk ratio if you’re betting on Cable dropping back to the 1.2175 mid-range support or even the mid-May lows near 1.2070.
If you’d rather bet on further upside moves on the pound, however, then you can also wait for a clear break above the previous highs and then aim for retests of the 1.2380 or 1.2440 previous areas of interest.
Breakout alert! GBP/CHF is now trading above what looks like a symmetrical triangle on the 1-hour chart.
What makes the setup more interesting is that the 100 SMA just might trade above the 200 SMA in the next couple of hours.The School of Pipsology suggests that triangle breakouts like these could be as strong as the height of the base of the triangle. That’s around 200 pips in this case!
Buying at current levels would make for a good trade if you’re aiming for a reversal that would push GBP/CHF back to its 1.1980 or 1.2000 previous highs.
If you’re not too sure about the reversal, then you can also wait for an actual SMA crossover or even a retest of the broken resistance before putting in your long orders.
Not a fan of the pound? That’s alright, you can also wait for the current upswing to lose momentum and then find resistance levels to take advantage of.
Whichever bias you’re trading, make sure you have a trading plan and that you stick to it like glue!