Dollar pairs keep making big moves lately, so I’m looking to catch these pullbacks on USD/JPY and GBP/USD.
Cable looks ready to retest a broken support zone while USD/JPY might be in for a channel correction.
GBP/USD 1-hour Forex Chart by TradingView
Missed the bearish break on Cable lately?
You might still have a chance to catch a quick pullback if this pair retraces to the former support zone around the 1.1950 minor psychological mark.
This happens to be in line with the 50% Fib and 100 SMA dynamic inflection point, which could attract more sellers. If so, GBP/USD could resume the drop to the swing low near the 1.1800 mark or lower.
Moving averages are already pointing to a continuation of the slide, but Stochastic seems to be hinting that the correction could go on for a bit. The oscillator has some room to climb before reaching the overbought zone to reflect exhaustion among buyers.
A higher pullback could reach the 61.8% Fib at 1.1970 or even the 1.2000 major psychological barrier, which might be the line in the sand for the bearish trend.
USD/JPY 1-hour Forex Chart by TradingView
Next up is a simple trend correction setup on the hourly chart of USD/JPY.
The pair has been cruising inside an ascending channel with its higher lows and higher highs since late February, and it looks like another dip to the bottom is due.
Using the Fib tool shows that the support area is near the 61.8% Fib and 136.50 minor psychological mark. To top it off, this is close to the dynamic support at the moving averages, too!
The 100 SMA is above the 200 SMA to confirm that the uptrend is more likely to resume than to reverse, although the gap is narrowing to reflect slowing upside momentum.
Meanwhile, Stochastic has a lot of ground to cover before reaching the overbought zone to signal exhaustion among bulls.
Just keep an eye out for reversal candlesticks around the support areas if you’re hoping to get more confirmation for a long play.
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