Wassup, dawg! It’s a brand new week but we’ll be starting this week’s intraday charts update by checking up on our old setups on GBP/CHF and GBP/CAD. Of course, it goes without saying that we’ll be lookin’ for fresh plays as well.
GBP/CHF is just a gift that keeps on giving. If y’all can still recall, we originally had a head-and-shoulders pattern on GBP/CHF’s 1-hour chart way back on September 29. That pattern was validated and we were able to nab us over a hundred pips.
And then, way back on October 2, we tried to add to our gains by lookin’ for opportunities to short when the pair pulls back to 1.2960. Also, we were gunning for 1.2850 and 1.2750, assuming 1.2960 holds as resistance.
Well, the pair did pull back all the way to 1.2960, which then held as resistance, and the pair easily reached 1.2750 to boot. So congratulations if any of y’all were able to ride that.
Anyhow, if we take the most recent price action into account, we can see that a fresh descending channel has recently formed.
And y’all better start lookin’ for an opportunity to go short soon since the pair is currently testing the channel’s resistance area at the 1.2900 major psychological level. In addition, stochastic is already signaling overbought conditions and all that.
Do note, however, that there’s always the risk of an upside channel breakout, so just be ready to bail if the pair clears 1.2960 on strong bullish momentum, m’kay?
Back on October 5, we were lookin’ for a chance to add to our shorts on GBP/CAD after the pair staged a downside breakout from an ascending channel that we identified way back on October 3. And we tried to do that by waiting for a pullback to 1.6550.
Sadly the pair didn’t quite reach 1,.6550 before resuming its downward trajectory and hitting 1.6440 and 1.6360. But if you were gangsta enough to jump in when the pair started to move lower, or if you were able to open a short based on our October 3 setup, then give yo self a pat on the pack for bagging some pips.
Anyhow, what appears to be a potential descending channel is currently forming on GBP/CAD’s 1-hour chart. I say “potential” because the would-be channel has to move lower in order to validate the pattern.
And so far, there’s a good chance that the pair may do just that since the pair pair is currently hesitating below the 1.6550 minor psychological level.
Moreover, stochastic is signaling overbought conditions and all that. Them moving averages, meanwhile, are in downtrend mode and the 100 SMA may even act as dynamic resistance to boot.
Just be ready to bail if the pair continues moving higher and clears 1.6670, though.
In any case, just make sure to practice proper risk management, a’ight?