Top Trade Setups, Jan 25 – EUR/USD & GBP/USD on the Radar
The European Central Bank (ECB) took no action on interest rates and decided to keep the interest rates steady. Here's a plan for forex.
Happy Friday, traders.
Today, the forex market is all about technicals as the economic calendar doesn’t have much for us. During the Asian session, the Greenback remained steady against most of its peers in the face of global economic worries.
As forecast, the European Central Bank came up with a dovish sentiment and warned about the dimming outlook, projecting weaker-than-expected growth in the Eurozone for the near term. Which ultimately means, no rate hike is expected in the near future.
Top Trade Setups Today
EUR/USD – Trading the Double Bottom Breakout
A day before on Thursday, the European Central Bank (ECB) took no action on interest rates and decided to keep the interest rates steady. However, President Mario Draghi cautioned that growth risks in the region had moved to the downside due to a number of outside factors.
On the dovish outlook, the EUR/USD violated the double bottom support level of $1.1345. On the 4-hour chart, the pair has closed below the double bottom pattern which is signaling a bearish bias for the pair. EUR/USD is likely to find support at $1.1270.
EUR/USD – Key Trading Levels
Support Resistance
1.1266 1.1365
1.1228 1.1426
1.1129 1.1525
Key Trading Level: 1.1327
EUR/USD Trading Plan
The idea is to stay bearish below $1.1345 with a stop loss above $1.1370 and take profit of $1.1340.
GBP/USD – Bullish Channel Breakout
The British Pound hits the highest level since November as Labour signals support for blocking the no-deal exit. The bullish momentum in the cable doesn’t seem to stop as it continues to rise above a strong resistance area of $1.3100.
Anyway, the long term trading range of $1.3175 – $1.3270 still remains intact as the pair is consolidating within it.
The leading indicator Stochastic has entered the overbought zone and the cable may face an immediate resistance near $1.3180 and $1.3210.
GBP/USD – Key Trading Levels
Support Resistance
1.3025 1.3093
1.2984 1.3121
1.2916 1.3189
Key Trading Level: 1.3053
GBP/USD Trading Plan
I’m looking to take a sell position below $1.3180 with a stop above $1.3200 and take profit of $1.3165 and $1.3120.
Good luck and have a profitable day!
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