And just like that, we’re trading the last trading day of the month!
Are you in the green yet?
Did you see Cable test a trend line support yesterday? If you didn’t don’t worry. The pound ended up breaking below the support anyway.That doesn’t mean there aren’t any opportunities though! As you can see, GBP/USD looks ready to retest the broken trend line that just might become resistance in the next coupla trading sessions.
If you see Cable finding resistance at the level, then you can start placing them short orders in case GBP/USD makes new October lows.
If the pair pops right back up above the trend line, however, then y’all gotta be ready to treat the “breakout” as a fakeout and trade uptrend plays.
Whichever bias you end up trading, make sure you know all about GBP/USD’s average weekly volatility so you can have realistic expectations for your entry and exit targets!
Feel like trading longer time frames instead? If you do, then you’ll definitely want to take a look at AUD/USD’s descending triangle on the 4-hour chart.The pair is hovering just above .7020, which lines up with a support zone that hasn’t been broken since it held in late September.
A long trade at current levels would give you the best reward-to-risk ratio if AUD/USD hits the 100 and 200 SMAs close to the triangle resistance area.
A break below the .7000 psychological level, however, could pave the way for a trip back down to the .6925 or .6850 previous areas of interest.
Watch this one closely, yo!