Yo! The chart pattern fiesta continues in intraday charts update since I’m serving up a couple of triangles on CAD/CHF and GBP/USD that the breakout chartists out there may like.
CAD/CHF has been trading sideways recently while apparently tapering into a point. And in the process, a symmetrical triangle pattern has emerged.
A symmetrical triangle may break either to the upside or the downside, so we don’t really have a strong directional bias on the pair. But if a breakout does occur, then the resulting rally or selloff may have enough steam for a 250-pip move.
Just remember, though, that an upside breakout move needs to clear 0.7950 before the breakout is confirmed and you can chillax. Unless the pair does that, then the risk remains high that the upside triangle breakout may end up being a fakeout.
A downside breakout move, meanwhile, needs to smash past 0.7700 in order to validate the downside break.
Another symmetrical triangle has recently formed on GBP/USD’s 1-hour forex chart.
And again, a symmetrical triangle can break either to the upside or the downside, so y’all may wanna prepare for both an upside breakout and a downside breakout scenario. Just know, though, that a breakout in either direction will likely have enough momentum for a whopping 300-pip move.
As for the key areas to watch, an upside breakout needs to move past 1.3330, ideally on strong bullish momentum. A downside breakout move, meanwhile, needs to break lower past 1.3030.
In any case, just make sure to practice proper risk management as always, a’ight?