I’m seeing opportunities to short GBP/USD at the top of its range and to catch a bearish pullback on AUD/JPY.
Take a look at these resistance levels I’m watching.
Check out Cable closing in on the very top of its range on the 4-hour time frame!
The pair looks ready to test the resistance around the 1.2425 mark soon and might make a turnaround back to the bottom from there.Stochastic is already in the overbought region after all, which means that buyers are exhausted and could allow sellers to take over.
Now price has a pretty long way to go before reaching the range support around 1.1840, but it might hit some roadblocks near the area of interest at 1.2200.
It might also find some buyers at the dynamic inflection points at the moving averages, especially since the SMAs suggest that a bounce higher is possible.
Feeling bearish on the commodity currencies?
Check out this potential short play on AUD/JPY!The pair recently fell through its ascending trend line support to signal that a reversal from the uptrend is underway.
However, price pulled up after finding support near the 86.00 handle and is in the middle of a correction from its slide.
The Fibonacci retracement tool shows where more sellers might be waiting to hop in on the selloff. Right now, the pair is testing the 50% level while Stochastic is reflecting overbought conditions.
If the oscillator heads south from here, AUD/JPY could follow suit and make its way back down to the swing low. A higher correction, on the other hand, could still reach the 61.8% Fib that coincides with the 200 SMA dynamic resistance and former trend line.