Welcome to another batch of Chart Art, forex brothas!
Feel like trading the pound today?
First up is EUR/GBP making new lows more slowly than my granny finishes her “power walk” around the block.As you can see, the steeper trend line between the lower highs is pointing to a possible bearish wedge situation.
If it is a bearish wedge and it ends up breaking higher as most bearish wedges do, then we could see the euro pop up to the .8700 major psychological area near the 200 SMA.
Think the euro is more likely to extend its downtrend instead?
Look for a retest of the trend line resistance or place them short orders below February’s lows if you’re confident that EUR/GBP will see new 2021 lows in the next few days.
Breakout alert! GBP/NZD encountered resistance at the 1.9400 major psychological level after breaking above a 4-hour range resistance.Pound bulls can buy at current levels now that GBP/NZD has seen some momentum above the support level. Stochastic even has your back with its recent departure from the oversold zone!
The 1.9400 February highs is a good initial target if you’re buying the pound against the Kiwi.
Feel like the Kiwi will kick the pound’s butt in the next coupla days instead?
You’ll want to at least wait for some bearish momentum before you short GBP/NZD and then aim for the 1.9150 inflection point until there’s a bigger catalyst that could pull the pound lower against the comdoll.