You just might have a chance at an entry with their pullback scenarios.
Just a coupla days ago we talked about EUR/GBP chillin’ inside a bearish wedge on the 1-hour time frame.
Instead of breaking higher as most bearish wedges do, though, EUR/GBP broke lower and hit .8540 before the bulls picked it up.The pair is now around the .8615 zone that lines up with the broken support on the pattern.
Think EUR/GBP is seeing a break-and-retest situation here? Shorting at the first signs of bearish momentum would yield tons of pips if EUR/GBP extends its downtrend.
The 100 SMA closer to the trend line resistance is also a good entry if you’d like to improve your risk ratios by a bit.
But what if the euro is done losing pips against the pound? Watch for a clear break above the 100 SMA, which could push the pair back to the .8700 previous area of interest.
If cleaner trends are more your thing, then you’re gonna love that GBP/CAD is sittin’ on a 38.2% Fib retracement that lines up with a mid-channel support AND previous support and resistance zone on the 4-hour time frame.Buying at current prices would yield a decent reward-to-risk ratio especially if GBP/CAD pops back up to its 1.7890 February highs.
If you’d really rather short the pound against the Loonie, though, then you can also consider shorting GBP/CAD as soon as it makes new weekly lows and then aim for the lower Fibs or the 100 and 200 SMAs as profit targets.
Whichever bias you end up trading, make sure you have a solid trading plan and that you stick to it like glue!