Top Forex Trade Setups, Jan 17 – Good Day to Trade Sterling Pairs
Good morning, fellas.
The financial markets are a bit muted ever since the UK Prime Minister Theresa May has marked off a bid to dismiss her government from leadership. She simply won a no-confidence vote by 325 to 306.
Therefore, Theresa May extends her battle to defeat the Brexit deadlock. Besides, investors will be awaiting the BOE Credit Conditions Survey which is due at 9:30 (GMT).
GBP/USD – Indecision & Sideways Channel Popping Up
On the 4 -hourly chart, the cable is holding below a solid resistance level of $1.2915. There’s a consistent tug of war among buyers and sellers, as we can see a series of indecision candles on the chart.
The GBP/USD is stuck in a thin trading range of $1.2915 – $1.2835. The pair is already above double top resistance 1.2835, which is now working as support. We can see a number of doji patterns in this range which is clearly signaling a neutral bias of traders.
Support Resistance
1.2847 1.2905
1.2815 1.293
1.2758 1.2987
Key Trading Level: 1.2873
GBP/USD – Trade Plan
Today, the idea is to stay bullish above 1.2840 to target 1.2890, while selling is preferred near 1.2895 today.
GBP/JPY – Get Ready for Retracement
The Sterling cross traded bullish around 140.400 level, but the recent bearish engulfing pattern is shaking the bullish sentiment.
Technically, the leading indicators RSI and Stochastic are entering the overbought zone. Which means, we may see the GBP/JPY coming downward to complete the retracement at 139.90 (23.6% Fibo level) and even below this.
Support Resistance
139.67 141.08
138.78 141.6
137.37 143.01
Key Trading Level: 140.19
GBP/JPY – Trading Plan
I will be looking to take a sell position in GBP/JPY on the bearish breakout of 140.150 with a stop below 140.650 and a take profit of $139.650 and $139.450.
Good luck and keep following for more updates!
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