Whether you like trading the majors or you’re more into currency crosses, I got your back with potential breakout and retracement trades on GBP/USD and NZD/JPY!
Breakout alert! GBP/USD is trading below the key 1.3000 psychological handle, which is major enough even before we even note that the current price is also below a trend line that has been supporting the pair since mid-October.
Are we looking at a breakout over here? The 1.2840 and 1.2780 areas look good for potential profit targets if you believe that the pound will extend its losses against the dollar.
Think we’re looking at a fakeout instead? After all, stochastic is currently favoring the bulls with its oversold signal. If you’re one of them bulls, then you’ll want to wait until the pound goes back above the trend line before you set up your uptrend trades that can have good reward-to-risk ratios.
Whichever bias you choose to trade, make sure you follow your trading plan like yo momma made it for you!
After falling down by about 300 pips in the last couple of days, NZD/JPY looks ready for a bit of a bounce. How high do you think can forex bulls push the Kiwi higher?
The 71.40 levels lines up with a 38.2% Fib while 72.70 is around a 50% Fib retracement and is just below the 100 SMA on the 4-hour time frame.
Remember not to wait too long for retests of those levels! MarketMilk’s trend analysis paints NZD/JPY’s daily time frame trend firmly in “bearish” territory, which means that NZD/JPY could resume its downtrend without hitting any major Fib retracement.
How about you? Do you think NZD/JPY will retrace high enough to hit the Fib levels? Or will it slide down the charts faster than JLo can on a pole?
Forex Chart Settings:
Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line
Roz has been engaged in the financial markets since 2017, specializing in Foreign Exchange, Before joining to FOREX IN WORLD she start to learn forex trading related information.
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