Wassup???
Pound traders are in for a treat because we’re checkin’ out not one, but two GBP-related setups today.
Which one are you trading?
GBP/CHF: 1-hour
Support alert! GBP/CHF is having trouble making new lows below 1.2620, which is understandable since the level has been a major inflection point for the pair since late July.
What makes the pound’s current prices interesting is that it might be forming a Double Bottom on the 1-hour time frame with its “neckline” near 1.2640.
Are we looking at an upside breakout in the making? Look for consistent trading above 1.2650, which could push the pound all the way to the 1.2700 – 1.2740 zone closer to the SMAs.
If GBP/CHF breaks below 1.2600, though, then you can also trade a possible dip to the pair’s August lows.
EUR/GBP: 4-hour
What’s better than a trend? A trend that has pulled back to attractive entry levels!
EUR/GBP has been on an obvious downtrend since late June and now the pair is flirting with the .8500 major psychological handle.
But wait, there’s more! As you can see, .8500 is also suuuper close to the SMAs as well as the channel resistance on the 4-hour chart.
Shorting at current levels would give you a good risk ratio especially if the euro drops back to its August lows.
If you think that the common currency will gain enough pips on the pound to force an upside breakout or even a reversal, then you can also place long orders above the SMAs and target areas of interest like .8600 or .8650.
