Welcome to a brand-spankin’ new trading week, errbody!
Let’s talk pound trades with GBP/AUD’s Fib retracement and EUR/GBP’s countertrend opportunity.
Get ’em while they’re hot!
GBP/AUD: 4-hour
GBP/AUD is having trouble extending its upswing above 1.8550, which isn’t surprising because the area lines up with a support level from September and a resistance zone in October.
Oh, and have you checked out the bearish divergence on the 4-hour time frame? The consolidation happening at the 50% Fib pullback of September to October’s downswing doesn’t hurt the bears either.
Pound sellers can start scaling in at current levels while the more conservative playas can sell after seeing bearish momentum.
The 1.8400 handle is a good enough initial target but y’all can also aim for the 1.8150 lows if you see enough momentum.
EUR/GBP: Daily
Countertrend traders huddle up!
The channel resistance + moving average action that we spotted a coupla days ago has played out and now EUR/GBP is consolidating riiiight at the .8400 zone that marks the bottom of a descending channel on the daily chart.
Countertrend traders can find confidence in Stochastic‘s oversold signal. .8500 is a good place to take profits but you can also set your sights on .8575 if there’s enough momentum.
Just remember that countertrend trading isn’t for everyone! There’s a reason why trends are traders’ friends after all.
If you’d rather short the euro against the pound, then you’ll want to wait for an attractive enough retracement before jumping in. Maybe at the mid-channel levels or closer to the simple moving averages?
