I’ve got a pound special for y’all today!
Whether you’re bullish or bearish on GBP, you might wanna keep these range and retracement plays on your radar.
EUR/GBP: 1-hour
First up is this neat range on the hourly chart of EUR/GBP.
The pair has been pacing back and forth between support at the .8490 level and resistance around .8585. Price is currently testing the top of the range and might be considering a bullish breakout.
Will euro bulls prevail?
Technical indicators are pointing to another potential drop, as the 100 SMA is below the 200 SMA while Stochastic is heading south.
Then again, the gap between the moving averages is narrowing to hint at a likely bullish crossover. If that happens, EUR/GBP could bust through the ceiling and go for a rally that’s the same height as the range.
That’s close to a hundred pips, so y’all better watch out!
GBP/CAD: 1-hour
Now this one already broke out of its short-term range, but don’t fret if you’ve missed out!
There might still be a chance to catch a retest of the broken support, which happens to coincide with the 38.2% Fibonacci retracement level.
Stochastic is pulling higher from the oversold region to show that buyers are taking over while sellers take a break. The oscillator has room to climb, which means that GBP/CAD could keep following suit until overbought conditions are met.
A higher correction could reach the 50% Fib near the 1.5750 minor psychological mark or even the 61.8% level near the moving averages.
The 100 SMA is below the 200 SMA to suggest that resistance levels are more likely to hold than to break. In that case, GBP/CAD could soon find its way back down to the swing low close to the 1.5600 handle.
