NZD/USD: The pair reached an important resistance of 0.7642 after several weeks of a clear uptrend.
GBP/USD: A second test of the resistance level of 1.6001 happened during the last trading session. This second test confirmed the strength of this resistance, suggesting high probability for a reversing trend.
NZD/USD
Weekly graph: http://www.real-forex.com/charts-daily/181010/NZD_WEEKLY_181010.JPG
One Hour graph: http://www.real-forex.com/charts-daily/181010/NZD_1H_181010.JPG
The pair reached an important resistance of 0.7642 after several weeks of a clear uptrend. Once the resistance reached, the pair started to decrease, creating an opportunity for a “Short” transaction.
Potential trade
Our suggestion before entering any transaction is to identify a decreasing configuration on one hour graph. Our analyses suggest the creation of such a configuration once the support level of 0.7534 will be crossed. The best time to order the transaction might be after the identification. Following our analysts’ transaction:
· “Limit” order on “Short” position 10 pips below the mentioned support – 0.7524.
· “Stop Loss” order on the last high occurred – 0.7584
· First destination suggested for a “Take Profit”: 0.7479
According to our analyses, the probability for a long-lasting “Short” is quite high. Anyway, we would limit the profit to the closest support in order to avoid bad surprises.
GBP/USD
Daily graph: http://www.real-forex.com/charts-daily/181010/GBP_DAILY_181010.JPG
One Hour graph: http://www.real-forex.com/charts-daily/181010/GBP_1H_181010.JPG
A second test of the resistance level of 1.6001 happened during the last trading session. This second test confirmed the strength of this resistance, suggesting high probability for a reversing trend. On daily graph, a falling star (10 pips breach of the last low occurred) should confirm the reversal.
We are anticipating a small correction of the trend before the real decrease will start. Therefore, we suggest waiting for the end of the correction, identifying the decreasing configuration on the One Hour graph, and entering the transaction you might want.
Have a profitable day!
