Chart Art: Back-to-Back Pound Setups With EUR/GBP and GBP/NZD

National Financial Solution > Forex Trading > Chart Art: Back-to-Back Pound Setups With EUR/GBP and GBP/NZD

Who’s up for trading the pound?

I hope you like trading the British pound because we got a back-to-back special with EUR/GBP and GBP/NZD today.

Which setup will you most likely trade?

GBP/NZD: 1-hour

GBP/NZD 1-hour Forex Chart
GBP/NZD 1-hour Forex Chart

I don’t know if you’ve been watching GBP/NZD but the pair has recently broken its trend line support.

What makes the setup interesting today is that the pound is forming a possible Head and Shoulders situation around the 200 SMA and Fib retracement levels.

Can forex bears push for a full-on downtrend for the pound?

Check out how GBP/NZD reacts to its “neckline.” If you see the pair making new weekly lows, then you gotta be ready to trade a possible trip to 1.9675 or the 1.9620 previous support levels.

Think GBP/NZD will return to its uptrend instead? Wait for a few candlesticks to close above the broken trend line support before you can aim for areas of interest like 1.9950.

EUR/GBP: 1-hour

EUR/GBP 1-hour Forex Chart
EUR/GBP 1-hour Forex Chart

Comdoll trading not your thing? I gotchu!

EUR/GBP has been finding support at .8575 since last week. And why not? Not only is the level near the 200 SMA, but it’s also just above the broken trend line resistance on the 1-hour time frame.

Short-term traders can take advantage of the unbroken support by aiming for the .8600 weekly highs.

If you notice EUR/GBP dropping below the support area, though, then you should also be ready to short a possible breakout to the .8550 inflection point.

Watch this one closely, yo!

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