Who’s up for reversal setups?
If you are, then you better not miss what’s cooking on GBP/USD and CAD/CHF’s 4-hour charts!
Check them out!
Has Cable used up its start-of-year mojo?
Not only is GBP/USD not getting through the 1.2300 psychological handle, the pair is also forming a potential Head and Shoulders pattern!If the pattern forms its second “shoulder,” then we could see GBP/USD retest the 1.2100 “neckline.”
We could even see the pair drop back to its sub-1.2000 levels especially if traders pay more attention to the bearish SMA crossover.
If the neckline turns into a swing-term range support, though, then you should also be ready for GBP/USD possibly moving between the 1.2100 and 1.2200 inflection points until GBP/USD finds a new direction.
What do you think? Are we looking at a reversal in the making? Or is GBP/USD forming a longer-term range?
If you’ve missed CAD/CHF making higher highs and higher lows since December then you’re in luck!The pair is heading for the ascending channel support near the .6900 psychological area.
This time, CAD bulls also have a bullish SMA crossover in their corner. Even Stochastic is supporting more buying with its “oversold” signal on the 4-hour time frame.
Buying at current levels would give you a good risk ratio especially if you place your stops just below the channel or the SMAs and then target new 2023 highs for CAD/CHF.
If you believe that the 4-hour uptrend is just a pullback from a longer-term downtrend, then you can also wait for a break below the support zones that we’ve marked and then aim for December’s lows as soon as you see a bearish momentum below the support.