I hope you like trading the pound because we’ve got not one but TWO swing trade setups to look at today!
What do you think of GBP/USD and GBP/CHF’s 4-hour charts?
Take a look!
GBP/USD: 4-hour
The 1.3300 psychological handle must be a BFD for pound bulls because Cable bounced TWICE from the area in two weeks!
GBP/USD is now sporting what looks like a Double Bottom pattern after falling sharply in late February.
Will we see an upside breakout today? Keep your eyes peeled for consistent trading above the 1.3400 level as it could lead to a retest of the 1.3500 area of interest near the 100 and 200 SMAs.
Think GBP/USD will trade in a range instead? If the Double Bottom pattern’s “neckline” holds as resistance in the next trading sessions, then y’all should start preparing for a retest of March’s lows.
GBP/CHF: 4-hour
The pound had a bad enough week against the franc that GBP/CHF has recently broken below a trend line support that bulls and bears had been respecting since December 2021.
Luckily for the bulls, the bloodbath stopped at the 1.2200 area. GBP/CHF is now trading closer to the 1.2300 handle!
Before you buy GBP like there’s no tomorrow, take note that 1.2300 lines up with the 32.8% Fib retracement of last week’s downswing. Not only that, but it’s also a stone’s throw away from the broken trend line support!
Bears who are taking cues from the 100 SMA (almost) crossing over to the 200 SMA and an (almost) overbought Stochastic signal can start placing short orders around the current levels. March’s lows would be a good initial target though you can also aim for new monthly lows if you see enough momentum.
If you’re liking the current bullish momentum, however, or if you believe that GBP/CHF will soon go back to its longer-term uptrend, then you can also scale in at current levels and then exit as soon as you see sustained selling momentum near the SMAs or the broken trend line.
Good luck and good trading this one!
