Welcome to another week of chart pattern spotting!
I know you love them trend trades so today we’re looking at not one, but TWO trend continuation opportunities.
GBP/USD looks ready to bounce from the 1.4150 minor psychological handle!As you can see, the area lines up with a key resistance level from earlier this month as well as a trend line support that hasn’t been broken since early May.
Can the bulls extend the pound’s gains? Buying at current levels with stops just below the trend line will yield a good risk ratio especially if Cable makes new monthly highs in the next couple of days.
Before you buy the pound like there’s no tomorrow, though, you gotta make sure that GBP/USD stays below the trend line support. If you see the first signs of a downside breakout, then you should be ready for a possible trip to 1.4100, 1.4080, or 1.4040.
Major dollar pairs not your thing? Don’t worry, I gotchu!EUR/JPY is consolidating near 132.50, which is juuuust below a trend line support on the 1-hour time frame.
Are we looking at a reversal in the making? Before you short your euros, you should know that 132.50 is still near the 50% Fib retracement of the last upswing. That means we could still see a trend continuation if the bulls are motivated enough!
Buying at the first signs of bullish momentum could work if EUR/JPY climbs above the 200 SMA and the trend line support. The 133.20 or 133.40 inflection points could serve as your initial profit targets though you can also aim for new monthly highs.