Welcome to a brand spankin’ new trading week, errbody!
Who’s ready to catch all them pips?
Who is more persistent? Spring breakers who want to push through with their hot girl summer plans? Or pound bulls defending the 1.3820 support?I don’t know about them beachgoers but the 1.3820 range support remains intact and looks ready to retest the mid-range levels near the 1.3900 major psychological handle.
Stochastic has already left the oversold zone, though, so pound bulls would have to find some more friends if they want to get their momentum going.
If GBP/USD fails to get enough upside action and actually breaks below the range support, then you gotta be ready to trade a downside breakout all the way to 1.3750 or 1.3700 levels.
Not only has EUR/JPY broken below a trend line support that had been solid since the start of February, but price has already retested (and rejected!) the broken support.But wait, there’s more! The 100 SMA looks ready to cross below the 200 SMA and mark the first crossover since the uptrend really took shape in the first half of February.
Shorting at current levels could still yield a decent risk ratio especially if EUR/JPY makes new March lows in the next few days. Bears can place stops just above the trend line and SMA resistance area and aim for the 128.75 or 128.20 inflection points.
Just remember to watch this pair closely! Currency crosses tend to see wild price movements, so make sure you make enough room for volatility when making them trading plans!