DAX, GBP/USD Forecast: Two trades to watch

Introduction

The DAX and GBP/USD are two of the most popular currency pairs traded in the world. Both pairs have been in a strong uptrend in recent months, but there are some signs that they may be due for a correction. In this article, we will take a look at the technicals of both pairs and identify two potential trading opportunities that could emerge in the coming weeks.

DAX

The DAX has been in a strong uptrend since the beginning of the year, gaining over 20% in value. However, the pair has recently stalled at a key resistance level, and there are some signs that it may be due for a pullback. The 14-day RSI is overbought, and the MACD is starting to turn negative. If the DAX breaks below the 12,000 level, it could fall to the 11,500 level or even lower.

GBP/USD

The GBP/USD has also been in a strong uptrend in recent months, but it has also stalled at a key resistance level. The pair has been unable to break above the 1.4000 level, and it is now starting to pull back. The 14-day RSI is overbought, and the MACD is starting to turn negative. If the GBP/USD breaks below the 1.3800 level, it could fall to the 1.3600 level or even lower.

Two potential trading opportunities

Based on the technical analysis of the DAX and GBP/USD, there are two potential trading opportunities that could emerge in the coming weeks.

1. DAX short: If the DAX breaks below the 12,000 level, it could fall to the 11,500 level or even lower. Traders could enter a short position with a stop-loss order above the 12,000 level and a target profit of 500 points.
2. GBP/USD short: If the GBP/USD breaks below the 1.3800 level, it could fall to the 1.3600 level or even lower. Traders could enter a short position with a stop-loss order above the 1.3800 level and a target profit of 200 points.

Conclusion

The DAX and GBP/USD are two of the most popular currency pairs traded in the world. Both pairs have been in a strong uptrend in recent months, but there are some signs that they may be due for a correction. In this article, we have identified two potential trading opportunities that could emerge in the coming weeks.