Pound playas huddle up!
Are you looking at these opportunities too?
Earlier this week GBP/CHF has broken above a descending trend line resistance.Well, it looks like the bulls mean business! GBP/CHF is now trading at the 1.2000 major psychological handle that’s also about 30 pips from a key inflection point on the 1-hour time frame.
Watch out for the 100 SMA crossing above the 200 SMA, which could attract more bulls and push the pound to the 1.2030 or even the 1.2200 previous resistance levels.
Meanwhile, bears should keep an eye out for a potential rejection at the 1.2000 level. A drop from the resistance could drag GBP/CHF to the 1.1900 or 1.1800 previous areas of interest.
Cable is now above the big 1.3500 handle, a level that the bears have been successfully defending since the first half of 2018. That was around Prince Harry and Meghan Markle’s wedding!Can the bulls sustain the breakout? Waiting for a few green candles to close is your best bet if you believe that the pound could continue to gain against the Greenback in the next few weeks.
But what if we’re looking at a fakeout? Look for GBP/USD dropping back below 1.3500 and then aim for areas of interest like 1.3000 and 1.2700.
Whichever bias you end up trading, make sure to manage your risks like it’s yo business!
Good luck and good trading, errbody!