Sup, dawg! We’ll be taking a stroll down memory lane in today’s intraday charts update since we’ll be revisiting our old setups on GBP/USD and AUD/NZD. Of course, it goes without saying that we’ll be lookin’ for fresh plays as well.
GBP/USD is the gift that keeps on giving! If y’all can still recall, we first had an opportunity to short the pair when it broke out of the descending triangle we identified way back on August 10.
Later, on August 16, we noticed that the pair began to hesitate at 1.2850, so we hatched up two scenarios. The first was a Fibonacci retracement play and the second was a break past 1.2850. Either way, we were lookin’ to go short on the pair again.
Well, that Fibonacci play didn’t play out, but our downside breakout play did. So if you were also able to bag even more pips, then congratulations. We got even more bank, dawg! Aww, yea!
Anyhow, if we take into account the most recent price action, then we get that there fresh descending channel on the pair. And as y’all can see, the pair is currently close to the channel’s resistance area near the area of interest at 1.2850.
Y’all therefore better start lookin’ for opportunities to go short on the pair. And all the more so, given that stochastic is signaling overbought conditions and all that.
If resistance holds, then them bears will likely be gunning for 1.2750 and then 1.2690. But if resistance fails and the pair stages an upside breakout, then y’all may wanna think about bailing yo shorts if the pair clears 1.2900 on strong bullish momentum since that’s a sign that them bulls are in control.
We identified that there ascending channel on AUD/NZD’s 1-hour chart back on August 14. And back then, we were waiting for a chance to go long when the pair tests the channel’s support area at 1.0770.
Well, check that out, dawg! That’s right! As y’all can see, 1.0770 held as support and the pair shot up by 190 pips. Aww, yea! We good skillz, dawg!
Anyhow, the pair still has some room to move before it hits the channel’s resistance area. However, the pair already appears to be hesitating, apparently because the area of interest at 1.0960 is acting as resistance.
This gives us two possible plays. The first is an upside break past 1.0960. And to that end, it looks like the pair is forming what looks like a bullish flag. Such a play is risky, though, so only real gangsta traders may even wanna attempt going long on an upside breakout.
As for the second and more conservative play, well, that’s sitting and waiting until the pair retraces and tests the channel’s support area, which should be at or just above 1.0870.
In any case, just make sure to practice proper risk management, a’ight? Also, y’all may wanna switch bias if the pair stages a downside channel breakout and clear 1.0820 and 1.0770.