Welcome to mid-week AND mid-month trading, errbody!
I have a treat for short and long-term traders alike today because we’re looking at trend continuation setups on GBP/USD and EUR/CHF.
Are you in or nah?
As you’ve noticed, pound bears were about as subtle in their short-term domination as Kim K hinting that she’s always wanted to be a dementor.
GBP/USD hit a bump at 1.3900 and is now trading closer to 1.3800.
Have the bears run out of firepower? 1.3800 looks like it’s holding as support. Then again, it’s near an ascending channel support that hasn’t been broken since late August so I’m not surprised.
If you’re on #TeamBears, though, then you’ll want to sell when GBP/USD makes new weekly lows or once it starts trading firmly below the channel that we’ve marked.
If you’re more into European crosses, then you’re gonna like that EUR/CHF is in an interesting position on its long-term trend.
It’s consolidating near 1.0850, which is also around the 61.8% Fib of the last major downswing, the 100 and 200 SMAs on the daily, and a channel resistance that’s been solid since March.
Think the euro is in for more losses against the franc? You can start scaling in at current levels and add up once the bears see momentum all the way to the 2021’s lows.
Of course, you can also bet on an upside breakout. Just make sure that EUR/CHF is already firmly trading above the SMAs and the channel when you do it! You wouldn’t want to get caught in a fakeout, would you?