We’re capping the trading week with not one, but TWO pound-related setups.
Check both charts and see which trend you would want to trade today!
GBP/JPY may be trading below its 100 and 200 SMAs but it ain’t done trading inside an ascending channel!Aside from the trend line support, the pound is also finding buyers juuust under the big 150.00 major psychological handle.
If the current consolidation results in upside momentum above 150.00, then you can look at a possible trip to the 151.00 zone near the SMAs. Heck, you can even aim for the 153.00 March highs if you see enough momentum!
Meanwhile, the bears can wait for signs of a reversal. If GBP/JPY trades firmly below the trend line that we’ve marked, or if the 100 SMA crosses below the 200 SMA, then we could see a longer-term reversal for the pound.
Watch this one closely, errbody!
How about a lil’ comdoll action for ya today?
GBP/NZD looks determined to break below a trend line support that’s been keeping the bears contained since December 2020.For now, the bulls can count on the trend line and 200 SMA as well as an oversold Stochastic signal for support.
If GBP/NZD breaks below the support zone, though, then you gotta be ready to aim for previous inflection points like 1.8900.
Feel like buying the pound instead? All is not lost because we could still see a couple of bullish candlesticks near the trend line.
If you see a trend line bounce followed by bullish momentum, then you can probably eye levels like 1.9400 and 1.9700 as potential profit targets.