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Welcome to the last trading day of the week!

If you’re looking for setups to add to your watchlist, then you’re gonna love what I’m looking at NZD/USD and EUR/GBP‘s 4-hour time frames.

Check them out!

NZD/USD: 4-hour

NZD/USD 4-Hour Forex Chart
NZD/USD 4-Hour Forex Chart

NZD/USD is consolidating in what looks like a bullish pennant after climbing sharply in the last couple of weeks.

The School of Pipsology suggests that a breakout of the pattern could lead to the trend continuing by as much as the previous upswing. That’s around 600 pips, yo!

Think Kiwi bulls can force an upside breakout? The .6550 zone is a good initial target if NZD/USD breaks higher though you can also aim for .6600 and .6650 if the bullish momentum is strong enough.

Before you buy the Kiwi like it’s the last indoor plant available within the 10-mile radius, though, you should remember that triangles still represent indecision.

That means sellers could still win the breakout and drag NZD/USD to the .6350 or .6250 areas of interest.

What do you think? Which way will NZD/USD go?

EUR/GBP: 4-hour

EUR/GBP 4-hour Forex Chart
EUR/GBP 4-hour Forex Chart

Range traders huddle up!

EUR/GBP looks like it has just broken the .9000 psychological handle that’s been keeping the bears away since mid-May.

Are we lookin’ at a resistance-turned-support situation over here?

A long trade at current levels is a good idea if you’re betting on the euro gaining more pips against the pound in the next couple of trading sessions. The .9100 and .9200 handles make great targets if you’re one of them euro bulls.

But wait! Is that a bearish divergence I see?

If you think that we’re looking at a fakeout instead, then you can also wait for EUR/GBP to trade back inside the range and aim for the .8950 mid-range and 100 SMA or even the .8900 range support.

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line