What’s happening! I’m serving up a Sterling special for y’all this week with a lil’ something, something that both the bulls and bears can nibble on.
This first one is for both the bulls and bears with this simple channel on GBP/CAD. Both the top (now around 1.7400) and the bottom (now around 1.6800) of the channels have held like a rock, so much so that even Brexit volatility can’t push the market outside of the range.
Right now the market is trading in the middle around 1.7100 – 1.7200, but once it hits either side it’s definitely an area to look at for our next trade even with all of the Brexit drama going on!
Next up is for pound bulls out there, an inverted head-and-shoulders pattern on GBP/NZD. We can see it on the daily chart above, and the market now looks like it’s trying to break that neckline to go higher, which also coincides with a previous strong area of interest that spans through June to September of last year.
The current momentum is to the upside, and with a forex calendar set with events this week for both the pound and Kiwi, this is a watchlist idea that can easily turn into a trade sometime soon!
Lastly, we’ve got a textbook Fibonacci retracement play on GBP/JPY as the market has bounced all the way up to nearly test the 61% Fib level of the last swing move lower from around 149.00 down to 131.00.
If you’re a Sterling bear, this is definitely one to keep an eye out on considering this area was previous support that held strongly in 2018 before breaking in December. We can also see the stochastic indicator signaling that the market may be short-term overbought.