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Ready to get your first forex trades in this week?

Let’s get your feet wet with these short-term opportunities on GBP/USD and NZD/JPY.

Get ’em while they’re hot!

GBP/USD: 1-hour

GBP/USD 1-hour Forex Chart
GBP/USD 1-hour Forex Chart

First up is a nice and simple range play on Cable’s 1-hour time frame.

As you can see, pound bears are holding the line at the 1.4200 psychological handle that has also been serving as range resistance in the last two weeks.

Will pound bulls and bears stay within range levels again? Stochastic’s overbought signals should get the attention of some bears.

Shorting at the first signs of selling would yield a good risk ratio especially if Cable drops by 100 pips as it had been doing for weeks.

But if GBP/USD finally breaks above 1.4200, then you should also be ready with your breakout plays and a possible trip to the 1.4300 area.

NZD/JPY: 1-hour

NZD/JPY 1-hour Forex Chart
NZD/JPY 1-hour Forex Chart

Is it me or is NZD/JPY about to break out of a Head and Shoulders pattern?

NZD/JPY may have broken above a weeks-long range resistance but the lack of higher highs tells us that there may not be a lot of buyers left.

The 79.45 handle is the level to watch as it marks the “neckline” of the pattern. A break below the area could lead to a dip to the 78.80 zone near the 200 SMA.

If you see higher highs, however, then we can assume that NZD/JPY bulls have caught their breaths and are ready for more gains. The 80.20 May highs is a good initial target though you can also aim for the inflection point above the 80.00 levels if we see enough bullish momentum.