Ready to make your last-minute pips before the week ends?
I’ve spotted not one, but TWO opportunities today.
GBP/USD is chillin’ just under the 1.3100 major psychological handle, which is around a mid-range level, a 50% Fib retracement, and the 100 SMA on the 1-hour time frame.
Can pound bulls find support at the level? The 100 SMA area looks good as an entry if you’re betting on the pound making new highs in August.Of course, you can also wait for signs of a bullish momentum or even a retest of the 200 SMA closer to the broken channel resistance if you’re not convinced of the pound’s strength just yet.
Feel like the pound is in for a reversal against the dollar?
You can short at current levels and place stops above August’s highs if you’re one of them aggressive traders, or you can short as soon as GBP/USD goes back inside its descending channel or when the 100 SMA crosses below the 200 SMA if you’d rather wait for momentum.
Whichever bias you choose to trade, make sure you know all about GBP/USD’s average volatility before you place your entry and stop loss orders!
I’m seeing a big wedge and, no, it has nothing to do with how I fit in my pants during the lockdown.See, EUR/JPY is trading in what looks like a rising wedge pattern on the 1-hour time frame. According to the School of Pipsology, rising wedges can herald reversals if they pop up during uptrends.
Is EUR/JPY due for a reversal? A short trade below the pattern means expecting the pair to trade below the 100 and 200 SMAs to reach the 123.75 area.
If you’re still on EUR bull camp, however, then you can also buy at current prices (100 SMA and trend line support) and target 125.50 or new highs while placing stops below the SMAs.
What do you think? Which way will the pair go?