Yo! Ready to make pips rain before the week ends?
Today we’re revisiting a couple of setups that we looked at a few days back.
Did you know that GBP/USD and EUR/JPY are hitting key support and resistance levels?
Just over a week ago, we talked about a possible uptrend situation on Cable’s 1-hour time frame.But the bulls and bears didn’t wanna play man! After breaking below the trend line support that we were watching, it looks like GBP/USD is now locked inside a 100-pip range.
Bears have more opportunities today as GBP/USD hangs around the 1.1850 resistance. Momentum after a bounce from the resistance could mean a retest of the 1.3800 mid-range levels close to the 100 and 200 SMAs or a dip to the 1.3750 September support levels.
But wait! Don’t discount further pound gains just yet! Market bulls can still get some pips in if GBP/USD firmly trades above 1.1850 and heads for the 1.3940 – 1.3980 resistance zone in the next trading sessions.
A few days back, we marked 130.00 as a potential resistance for EUR/JPY. Unfortunately for the bears, the bulls partied all the way to the 130.70 zone before taking a chill pill.Euro bulls have another chance to get some pips in after EUR/JPY looks ready to bounce from 129.50. As you can see, the area is right smack at the 38.2% Fib retracement of August’s upswing AND the 100 and 200 SMA crossover on the 4-hour time frame.
The 130.70 previous high is a good place to start if you like buying them euros, but you can also plan for a trip to 131.00 or 131.50 previous areas of interest.
Whichever strategy you end up using to trade this setup, make sure you’re using your best risk management moves, aight?