Ready to bag more pips?
Which setup will you most likely trade?
Do you remember discussing GBP/NZD’s uptrend game on the daily? That was yesterday, yo! That’s 2,319 years ago in 2020’s pace!While the overall uptrend remains intact, pound bears are having themselves scaled-down parties on the lower time frames. See, GBP/NZD is dancing to the beat of a descending trend line and hasn’t made a move above the resistance since late August.
What’s interesting about it today is that it has just retested the trend line that also lined up with the 200 SMA and a 38.2% Fib retracement.
Can GBP/NZD extend its downtrend? Shorting at current levels would still make a decent trade especially if the pound drops back to its weekly lows.
If you’d rather buy the pound against the Kiwi, though, then you’ll want to at least wait until GBP/NZD trades above the trend line before you aim for previous inflection points like 1.9520 or 1.9680.
Not a fan of the comdolls? No problem!
EUR/GBP recently broke above a consolidation but turned lower after hitting resistance at the .9250 minor psychological handle.If you think the euro will eventually revisit its September highs, then you’re looking at a legit entry area near a 50% Fib, previous resistance, and the .9100 major psychological level. Heck, even Stochastic’s oversold signal is on your side!
Feeling like shorting the euro instead? You can wait for EUR/GBP to trade below .9100 and then make plays for a move down to its late August lows.
Whichever direction you end up trading, make sure to double check your orders, and manage your risks like a boss!