Feel like trading the pound today? You’re in luck!
Whether you’re a pound bull or bear, I’ve found setups that you’ll want to look at.
Check these setups out!
EUR/GBP is consolidating near a trend line support that’s been around for at least two weeks.
And if that’s not enough to get you to make trading plans, then you should also note that the current price sits on the 50% Fib of the last upswing, while a possible bullish pennant pattern forms on the 1-hour time frame.
Can the euro extend its gains against the pound? Buying at the first signs of bullish pressure is a good idea if you’re up for some trend continuation. You can target August’s highs near .8600 but you can also aim for new monthly highs if you see enough momentum.
Meanwhile, euro bears and pound bulls should wait until EUR/GBP dips below the trend line AND the 200 SMA on the 1-hour chart before making plays for previous support levels like .8515 or .8500.
Here’s a setup that I’m sure you’re familiar with these days – ranges!
GBP/NZD is a few pips up from the 1.9650 mark that has been supporting the pair since early June.
This time around, a bullish divergence and an oversold Stochastic signal on the 4-hour time frame could bring some bulls to GBP/NZD’s yard.
The 1.9950 resistance that had held in June is a good initial profit target, but you can also aim for the 2.0050 July and August highs if you believe that the pound will strengthen enough against the Kiwi in the next couple of days.
Not a fan of buying the pound? That’s fine, you can also design trading plans around a downside breakout. Just make sure that you don’t get caught in fakeouts and that your stops cover GBP/NZD’s average volatility!