Chart pattern time! Let’s end this week’s intraday chart update with a couple of chart patterns on EUR/AUD and GBP/USD. Check ’em out!
Is GBP/USD gonna be busting some downside moves soon? Well, that does appear to be the case for now. After all, a rising wedge pattern has recently formed on GBP/USD’s 1-hour forex chart.
A rising wedge (despite its name), is a bearish forex chart pattern, so our main directional bias is to the downside. And a downside bias seems right since bears appear to have entrenched themselves at the area of interest at 1.2970. Also, 1.2970 happens to line up nicely with the 38.2% Fibonacci retracement level.
Anyhow, if a downside breakout happens, then y’all can jump in with a short at the breakout point if you be gangsta enough. That’s extra risky, though. So if y’all want to play more conservatively, then y’all may wanna wait until the breakout is confirmed when the pair clears both 1.2850 and 1.2810.
If the pair breaks past that, then them bulls will likely be gunning for 1.2700 next. Although the pair may still have enough momentum to go lower.
Do note, however, that there’s also a slim chance that the pair may break to the topside instead. And if that happens, then bulls will likely be shooting for 1.3110.
Okay, gonna keep it real with y’all. That there ascending channel on EUR/AUD’s 1-hour chart ain’t exactly fresh since we played it last back on August 29.
Back then the pair was testing the channel’s resistance area so were expecting the pair to move lower to 1.4930. Going short in an ascending channel is extra risky, but if you were gangsta enough to go for it, then congratulations on bagging some delicious pips. Aww, yea!
Anyow, the pair is back at the channel’s support area at 1.4930 and the pair appears to be hesitating. In addition, stochastic is already signaling oversold conditions and all that. Them moving averages, meanwhile, are still in uptrend mode.
As such, there’s a good chance that support will hold and that the pair may be moving back up soon. Y’all therefore better get ready to start lookin’ for opportunities to go long on the pair.
Again, there’s always a slim chance for a downside channel breakout, so y’all may wanna prepare for such a scenario. The pair needs to clear 1.4750 in order to validate the downside channel breakout, though.
In any case, just make sure to remember to practice proper risk management, a’ight? Peace! See y’all next week!