If you’re hoping to catch new trends today, then you’re in luck!
I’ve covered a couple of break-and-retest plays on the pound pairs right here.
Heads up for an uptrend reversal, fellas!
After breaking through its head and shoulders neckline on the hourly chart, EUR/GBP has since pulled up to the former support for a quick retest.
Will sellers return soon?This broken neckline is right smack in line with the 50% Fibonacci retracement level and the 100 SMA dynamic inflection point, which might add to its strength as a ceiling.
The thing is, though, the 100 SMA is still above the 200 SMA, for now, to signal that there’s a slight chance the uptrend could carry on. Then again, the gap between the moving averages is narrowing to reflect slowing bullish momentum and a potential downward crossover.
Also, Stochastic already made it to the overbought region to indicate exhaustion among buyers. Turning lower would confirm that sellers are back in action, possibly taking EUR/GBP down by the same height as the chart pattern.
This one also busted through the neckline of a reversal pattern to signal that the tide is turning!
GBP/CHF formed a double bottom on its 1-hour chart and has since climbed past the resistance around the 1.2200 handle.The 1.2250 minor psychological mark is proving to be a tough barrier to crack, though, so a pullback might be needed to encourage more pound bulls to join in.
Price could still retreat to the area of interest spanned by the Fibonacci retracement levels all the way down to the 1.2150 mark. If any of these are able to keep losses in check, GBP/CHF could climb back to the swing high and beyond. Also, be mindful of GBP/CHF pivot points.
Note that Stochastic is already starting to pull higher to show that bullish pressure is about to kick in, but the moving averages have yet to complete an upward crossover.