I hope y’all are in the mood for more chart patterns ‘coz I’m closing out this week’s intraday chart update with a head-and-shoulders on GBP/CHF and a triangle on GBP/NZD. Hmm. I guess that means I’m serving up a pound + chart pattern double special today.
The uptrend on GBP/CHF’s 1-hour chart is finally running out of steam it seems. And while them bulls are still putting up a good fight, it’s clear that them bears currently have the upper hand since a head-and-shoulders pattern appears to have formed.
A head-and-shoulders pattern is a signal that an uptrend may end and that a new downtrend may begin, so sound the reversal alert, yo! And all the more so, given that them moving averages just recently crossed-over into downtrend mode.
Anyhow, if the pattern is validated by a strong break past 1.2960, then them bears will likely be gunning for 1.2750. However, there’s an area of interest along the way at 1.2850, so y’all may wanna observe how the pair reacts to that.
GBP/CHF looks like it’s about to take a trip to the downside, but GBP/NZD is signaling that it may go in the opposite direction – to the upside- since an ascending triangle has recently formed on GBP/NZD’s 1-hour chart.
As the name implies, an ascending triangle is a bullish chart pattern, so our main directional bias is to the upside. And of the pair does successfully break past resistance at 1.8720, then the pair will likely have enough momentum for a 400-pip move.
However, just keep in mind that there’s always a chance that the pair may break to the downside instead. So y’all may wanna plan ahead for such a scenario as well, especially if the pair validates the downside break by smashing past 1.8250.
In any case, just make sure to practice proper risk management, a’ight?