Chart pattern time! I’ve got a fresh triangle on EUR/NZD and a channel pattern for GBP/USD in today’s intraday charts update. Check ’em!
If y’all can still recall, we had a descending channel for EUR/NZD back on September 21. However, if we take the most recent price action into account, we can see that the pair has formed what appears to be a symmetrical triangle pattern.
And as I always tell y’all, a symmetrical triangle may break either to the upside or the downside, so we don’t really have a directional bias on the pair. But if (or when) the pair does break in either direction, then the resulting rally or selloff would likely have enough steam for a whopping 350-pip move.
Just keep in mind, however, that an upside breakout needs to clear 1.6520 and 1.6630 on strong bullish momentum. Unless the pair does that, then there’s a good chance that the breakout may end up being a fakeout.
A downside break, meanwhile, needs to smash past 1.6140 and 1.6030 before the breakout in confirmed.
If you’re more of a trend rider and trading breakouts ain’t really your thing, then check out that there descending channel on GBP/USD’s 1-hour forex chart.
As y’all can see, the pair has been trading ever lower while trapped inside that there descending channel. And as y’all should probably know by now, one of the more conservative ways to play a descending channel is to look for opportunities to go short when the pair is at or close to the channel’s resistance area.
And lucky us since that’s where the pair is currently at. So y’all therefore better start lookin’ for opportunities to go short. And all the more so, given that stochastic is already signaling overbought conditions and all that while them moving averages are in downtrend mode.
Just be ready to bail if the pair clears 1.3480 and 1.3550 after an upside channel breakout, though. But if the pair respects the channel and moves back down again, then them bears will likely be gunning for 1.3320 and then 1.3210 next.
In any case, just make sure to practice proper risk management, a’ight?