Remember the ascending channel on GBP/USD that I pointed out yesterday? Well, it’s still intact! The channel’s rising resistance held and after a steep drop, price is now near the bottom of the channel. If you think it’s time to go long, aim for the resistance area at 1.5900. But if you feel that this channel is finally ready to break down, you ought to wait for a strong bearish candlestick to close below the rising support before you start selling.
Will we see AUD/USD complete its inverse head and shoulders pattern? The pair recently broke above the formation’s neckline, but at the moment, it seems like it wants to head back down. Price is finding support on the neckline though, so what we’re seeing could just be a momentary pullback before Aussie bulls take the pair above 1.0100. But you never know, the neckline might break down for a second time, and price might find itself below .9800 again. It would be best to wait for confirmation from candlesticks before you make your move.
Whatcha gonna do now NZD/USD? Are you going to bust out of that huge symmetrical triangle formation or what? With price consolidating at the tip of the triangle, it looks like we may see a breakout soon! If you’re feeling bullish on the pair, look for a convincing close above the falling trend line resistance as a signal that the pair is heading up. On the other hand, if you’re part of the bear camp, wait for a break of the rising trend line support before going short.