Ready for more forex plays?
We’re taking a closer look at the majors today because GBP/USD looks set to extend an upswing while EUR/USD is having trouble breaking above a resistance.
Check them out!
GBP/USD: 1-hour
Pound bulls have been busy making pips rain this month, yo. GBP/USD is about 150 pips higher than its monthly open price!
The bears got some pips in at 1.3900, though, which isn’t surprising since the psychological handle also lines up with a key resistance back in August.
Those who are betting on the uptrend gaining more ground can take advantage of the pullback to the 1.3830 area near a 38.2% Fib retracement and the broken ascending channel resistance on the 1-hour time frame. 1.3900 is a shiny level to target but you can also aim for the 1.3950 levels if you see enough momentum.
Think GBP/USD will see a deeper pullback before the bulls step in again? You can watch out for a retest of the lower Fib levels closer to the moving averages and make plans to enter as soon as you see some momentum.
EUR/USD: Daily
Remember that range bounce that we clocked a couple of weeks back? Well, I hope you took the trade because EUR/USD ended up revisiting August’s highs!
Thing is, EUR/USD just sported a Spinning Top-like candlestick at the 1.1900 psychological handle that lines up with August’s highs. What’s more, Stochastic is telling us that EUR/USD is “overbought” on the daily time frame.
Can the euro maintain its upswing? Watch how today’s candle closes to see if it turns into an Evening Star pattern. If you see EUR/USD gain bearish momentum, then you gotta be ready to trade a possible return to the 1.1700 support.
But if EUR/USD makes new monthly highs, or if it easily pierces the 1.1950 mid-range and SMA resistance areas, then you can also make trading plans around a trip to the 1.2000 or 1.2200 range resistance levels.
