Who’s up for some GBP trading?
See, the pound has reached (breached?) notable levels lately.
Take a look at EUR/GBP and GBP/NZD’s charts and see if you can make pips from a trend bounce and a breakout!
A few days back, we talked about EUR/GBP possibly finding resistance from a Fib level and previous support.But euro bulls ain’t got time for resistance! EUR/GBP not only broke above the resistance level that we marked, but it also busted through the trend line resistance on the 4-hour chart.
Look out for the 100 SMA that’s on track to cross the 200 SMA and maybe support a more sustained upswing for the euro.
For now, I’m eyeing the possibility of a pullback to the .8600 major psychological handle that’s near a previous resistance.
If breakout plays are not your thing, then you gotta check out GBP/NZD’s trend on the daily.The pair is about a hundred pips from the 1.9700 handle that was around a long-term trend line support.
Now that the bulls are giving us a solid green candlestick, I’m thinking a bounce is in the making.
The 1.9900 previous resistance is a good initial target for pound bulls but you can also aim for new 2021 highs if you’re confident in your risk ratios.
If you think that GBP/NZD will soon break below its trend line support, though, then you can also place orders below the trend line and aim for a retest of the 200 SMA.
Good luck and good trading this one!