Happy last trading day of the week, forex friends!
Feel like the pound is about to gain pips against its major counterparts?
I gotchu with these daily time frame setups on GBP/USD and GBP/NZD!
Cable has been on a downtrend since mid-May when GBP/USD found resistance at the 1.4200 psychological handle.GBP bulls and bears prefer to hang out between 1.1800 and 1.2200 these days but the Reverse Head and Shoulders pattern suggests that the bears may be running out of steam.
I’m looking at the 1.2285 “neckline” level and the 100 SMA resistance to see if there are enough buyers to force an upside breakout.
Think GBP/USD will is bound for a long-term reversal?
A break above the Reverse H&S neckline could push GBP/USD to the 200 SMA near the 1.3000 zone.
On the other hand, a rejection at the resistance opens Cable to a trip back to its 2022 lows near 1.1750.
What’s better than price trading in an identifiable range?
Price approaching said range’s support or resistance levels, of course!GBP/NZD is about to hit 1.8850, which lines up with a range support that GBP bulls have been defending since the start of 2021.
Will the range support hold again this time?
Not convinced that GBP/NZD range support can survive this week’s strong downswing?
Keep an eye out for a clear breakout below 1.8850, which could drag GBP/NZD to previous inflection points like 1.8800 or 1.8700.