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Welcome to mid-week trading, yo!

We’re checkin’ out the pound today because EUR/GBP is sitting on a channel support while GBP/NZD is fast approaching a key inflection point.

What do you think of these setups?

EUR/GBP: 1-hour

EUR/GBP 1-hour Forex Chart
EUR/GBP 1-hour Forex Chart

EUR/GBP looks ready to break out of a short-term consolidation just above the .9000 major psychological handle.

And why not? As you can see, its current prices line up with low key ascending channel that has been supporting the euro since late July.

Can the bulls maintain EUR/GBP’s slow and steady climb? Buying at current levels would give you the best reward-to-risk ratio especially if you aim for this week’s highs above .9050.

Not a fan of the euro? You can also wait for a break below the channel and look for some kind of support near the .8975 August lows.

GBP/NZD: 1-hour

GBP/NZD 1-hour Forex Chart
GBP/NZD 1-hour Forex Chart

Here’s one for the comdoll warriors out there!

GBP/NZD is testing the 1.9950 minor psychological level, which is right smack at an ascending channel support that hasn’t been broken in two weeks.

What makes its current levels more interesting is that the 200 SMA is right below the area AND that Stochastic has just hit oversold territory.

Before you buy the pound like there’s no tomorrow, though, you should note that GBP/NZD hasn’t popped up bullish candlesticks just yet. Until we see consolidation or bullish momentum, GBP/NZD could still test the 200 SMA or even break below the pattern before buyer pressure.

Forex Chart Settings:

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