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We already have a chart pattern fiesta last week. But I’m starting this week’s intraday charts update with another batch of chart patterns. This time, I’ve got a triangle on AUD/USD and a channel pattern on GBP/JPY.

AUD/USD: 1-Hour

AUD/USD: 1-Hour Forex Chart
AUD/USD: 1-Hour Forex Chart

AUD/USD has been trading sideways recently. And if we connect the most recent peaks and troughs, we can also see that the pair has been tapering into a point, giving us that there symmetrical triangle pattern to play with.

A symmetrical triangle could break out either to the topside or the downside. As such, we don’t really have a strong directional bias on the pair, and y’all may want to prepare for either scenario.

Looking at our technical indicators, however, we can see that them moving averages are still in uptrend mode while stochastic is already signaling oversold conditions and all that. An upside breakout therefore seems more likely, for now at least.

Anyhow, the pair now appears to be trading in a range between 0.7960 and 0.7880. A break above 0.7960 would therefore be an early signal that an upside breakout is about to happen while a break below 0.7880 would be an early sign for a downside break.

However, the pair needs to clear 0.8040 before an upside breakout is validated. Otherwise, chances are high that the breakout may end up being a fakeout. A downside breakout , meanwhile, needs to smash past 0.7820 in order to confirmed the break.

GBP/JPY: 1-Hour

GBP/JPY: 1-Hour Forex Chart
GBP/JPY: 1-Hour Forex Chart

If you’re less of a breakout chartist and more of a trend rider, then check out that there descending channel on GBP/JPY’s 1-hour chart.

Well, it’s not really a complete channel yet since the pair has to move all the way down and test the would-be channel’s support area before the pattern is validated.

So if you’re more of the conservative type, then you may wanna sit this one out for now. But if you’re gangsta enough, then just know that the pair recently got rejected when tested the area of interest at the 143.00 major psychological level.

You may want to wait until the pair breaks the minor rising trend line (red diagonal line) and clears the area of interest at 141.40 before shorting, though. After all, the channel pattern hasn’t been confirmed yet.

Also, our technical indicators don’t look right yet. In fact, they seem to support a bullish move, with them moving averages in uptrend mode and stochastic pointing back up again after reaching oversold territory.

And in case the pair opts to go higher instead, then a clean break past 143.00 would be a good early sign that bulls are in control. However, clearing 144.00 would be an even better sign of bullish control.

In any case, just make sure to remember to practice proper risk management, a’ight?

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line