Ranging, ranging, ranging! That’s all I see on GBPUSD this past week! The pair has been stuck in descending channel, as it has found resistance around 1.5680 to 1.5700. Currently, the pair is trading in the middle of the channel and appears to have found support. Stochastics are also showing oversold conditions. Is it time for the pair to reverse? Or will it continue to shoot down lower and test the bottom of the channel at 1.5460?
If you’re up for selling the euro to end your week then this pair is for you! Take a look at the descending channel that I spotted on the 4-hr chart! It seems like the pair is looking pretty primed for a drop after consolidating near the top of the channel. Hmm, better wait to see if the bulls make a run for the 1.4400 handle since stochastics still hasn’t crossed out of overbought territory. If the sellers come in strongly, look for them to push price back down to test for new lows around 1.4100.
Last but not least, let’s hop on over to the daily chart of AUDJPY. It seems that over the past couple of months, the pair has consolidated and is forming a huge symmetrical triangle. Will the pair break out of consolidation or will it ride the triangle until the end? Stochastics has been playing around the oversold region for a while, but the pair could still find support on the rising trendline. Don’t fall for any fakeouts on this one!