Let’s check out what’s showing on the cable… The GBPUSD 1-hour chart, that is! There’s a symmetrical triangle formation at the bottom of the pair’s downtrend. Could this mean that sellers are simply pausing before taking the pair any lower? Or does this imply that buyers are about to take over? If the pair breaks below the bottom of the triangle, it could tumble down until this week’s low of 1.6168. On the other hand, if it breaks above the top of the triangle, it could climb until this week’s high of 1.6488.
Take a look at the EURUSD 1-hour chart above. See how the pair is clinging to the descending trend line? The pair has been unable to break above the trend line during its last attempt to do so. Still, we might see it break out this time and surge all the way to previous resistance around the psychological 1.4900 handle. If the trend line proves to be too strong for the EURUSD to break, the pair could fall and even breach previous support around the 1.4670 area.
Next is the NZDUSD pair on its 4-hour chart. So as you can see, the pair looks poised to breakout from a double bottom pattern any time soon. Though, it might need a lot of buying pressure to move the pair past the neckline especially now that the stochastics are on the overbought region. It can easily reach the previous high around the 0.7500 mark if it manages to breach 0.7300. On the other hand, it can also fall all the way down to the double bottom’s bottom around 0.7050 if the sellers take over.