U.S. markets may be out today but that doesn’t mean we can’t see explosive price action before the week ends!
Check out what’s up on GBP/JPY and GBP/CHF‘s charts.
Are you also seeing these reversal opportunities?
GBP/JPY: 1-hour
Breakout alert! GBP/JPY has recently broken above a range that kept bulls and bears contained within a 150-pip range for most of June.
What makes the setup interesting today is that GBP/JPY may be hitting the 133.50 previous resistance and the pound just might find support from the level.
Buying at the earliest signs of bullish momentum is your best bet if you believe that the pound is about to see an upswing against the yen. The 134.50 previous highs or 135.00 and 136.00 areas of interest look legit as initial targets.
If you’d rather short the pound against the safe haven, though, then you’ll want to at least wait until Guppy trades below the SMAs again before you aim for June’s lows.
GBP/CHF: 4-hour
I spy with my eye a potential inverse head and shoulders in the making!
Buying at a shoulder support or a break above the 1.1820 “neckline” would make for good trades if the pound sees sustained upswing against the franc.
Not convinced that the pound is heading higher? You can also short at current levels and place your stops just above the neckline or 100 SMA if you’d rather trade a trip down to June’s lows.