I hope you like trading currency crosses because I’ve spotted not one but TWO potential money-makers!
If you haven’t, then you gotta hop on to your charting software and check them!
GBP/AUD is finding resistance around the 1.7850 levels, which lines up with a 50% Fib retracement that’s also around the 200 SMA on the 1-hour time frame.Will the pound extend its downswing against the Aussie?
Shorting at current levels would give you the best risk ratio if you’re planning on joining GBP/AUD’s downtrend party and the pair drops to its December lows.
If you believe that the pound is in for a couple of bullish days against the comdoll, though, then you can start plotting them long orders above the 200 SMA and the 61.8% Fib and aim for a return to the 1.7950 and 1.8040 previous inflection points.
After breaking above a descending trend line, EUR/GBP is working on its uptrend by not trading below a rising trend line on the 4-hour time frame.What makes the chart more interesting today is that price is testing the trend line AND is trading around the 100 and 200 SMAs on the chart.
Can euro bulls respect the trend line and the SMAs for another day? A long trade at market prices is a good idea if you’re betting on EUR/GBP poppin’ back up to its .9200 December highs.
Not a fan of the euro? That’s aight, you can also focus on a possible downside breakout, which will happen if EUR/GBP starts trading below the trend line support and dips all the way to the .8875 November lows.