If any y’all are lookin’ for more chart patterns, then y’all may like today’s intraday charts update since I’m serving up a triangle on GBP/AUD and a channel and GBP/JPY.
A descending triangle has formed on GBP/AUD’s 1-hour forex chart. And as implied by the name, a descending triangle is a bearish chart pattern, so our main directional bias is to the downside.
And our main play is to wait for the pair to stage a downside breakout past 1.6800, with the expectations that the pair will be gunning for 1.6500, which is 300 delicious pips away.
Do note, however, that the descending triangle formed after an uptrend. Moreover, stochastic is already signaling oversold conditions and all that while them moving averages recently crossed-over back into uptrend mode.
Given all that, there’s also a chance for an upside breakout, so y’all may wanna prepare for such a scenario as well.
Anyhow, if the pair clears 1.7000, then that’s an early sign that bulls are in control. The pair needs to take out the most recent resistance at 1.7170 before the upside breakout is confirmed and the uptrend continuation is validated, though.
After trending lower for a while, GBP/JPY found support at 147.30 before starting to trade while tilting to the upside. And if we connect the most recent peaks and troughs, we can see that a fresh ascending channel has formed on the pair’s 1-hour chart.
And as y’all can see, the pair is currently testing the channel’s support area. Y’all may therefore wanna start lookin’ for an opportunity to go long on the pair. And all the more so, given that stochastic is indicating oversold conditions and all that already.
As usual, however, there’s always a risk that the pair may stage a downside channel breakout instead. So just be ready to bail yo longs if the pair breaks lower past 147.30. And if the pair takes out 146.40, then y’all may even wanna switch to a bearish bias on the pair.
In any case, just make sure to practice proper risk management, a’ight?