If you’re looking at the pound for short-term or swing trades then you’ve come to the right place!
GBP/CHF looks ready to extend a short-term downtrend while GBP/NZD looks ready for a reversal.
What do you think of these setups?
GBP/CHF’s 100 SMA has crossed below the 200 SMA and now the pair is having trouble making new highs above the 1.2450 mid-channel levels.Momentum below the current consolidation could lead to the bears dragging the pound down to yesterday’s lows if not the 1.2400 or 1.2350 areas of interest.
If you’d rather buy the pound against the safe-haven franc, then you’ll want to do it once GBP/CHF clearly breaks above the channel resistance that we’re seeing on the 1-hour time frame.
A break above the area would mean that the bulls have enough firepower to bust through the channel AND the SMAs!
Is it me, or is GBP/NZD looking a bit “toppy” at the moment?Getting rejected at the 2.0150 zone TWICE in the last two weeks has formed a Double Top-like pattern on GBP/NZD’s 4-hour time frame.
The momentum is currently on the bears’ side but keep an eye on how GBP/ZND reacts to the pattern’s “neckline” near the 100 SMA.
A bounce from the 1.9950 area around the 100 SMA could lead to a trip back to the 2.0150 January highs.
If you see GBP/NZD break below the support, though, then you should also prepare for a possible dip down to the 1.9770 or 1.9700 previous inflection points.