Welcome to the last trading day of the week! If you’re looking to get your last-minute pips, then you’ll definitely want to check out GBP/USD‘s downtrend and NZD/JPY‘s potential double bottom.
A couple of days ago we spotted GBP/USD chillin’ like a villain around the bottom of a descending channel.
Well, it looks like the bulls have pushed the pedal to the metal! Cable is now trading just below the big 1.3000 mark, which is near the 200 SMA and descending channel resistance on the 4-hour time frame.
Can the bulls sustain their momentum? Keep in mind that MarketMilk is flashing a “bullish” signal for the pair’s short and long-term moving averages on the daily time frame.
A break above 1.3000 could push the pair to previous areas of interest like 1.3050 or 1.3150.
But what if the bears are just waiting at 1.3000? If the channel resistance holds, then we could see Cable drop back down to 1.2875 or even its 1.2750 previous lows.
I spy with my eye a potential double bottom pattern in the making!
NZD/JPY just bounced from the 66.75 zone for a second time this month, which paints a nice picture of a potential double bottom pattern with its “neckline” at 68.00.
Buying at current levels would give you a nice reward-to-risk ratio especially if you’re confident that NZD/JPY will maintain its upswing and even break above 68.00.
However, if you believe that NZD/JPY is ready to make new 2020 lows and revisit levels not seen since 2012, then you can also build up your shorts as soon as the pair breaks its March lows. Just take care not to get caught in a fakeout!
Whichever bias you choose to trade, remember to limit your risks and to follow your trading plan!
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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