Pound bears, watch out! GBP/JPY is closing in on a major support level visible on its 4-hour forex chart, which means that the pair might pause from its recent dive. Price is still a good 300 pips away from the floor but stochastic is already indicating oversold conditions. This suggests that sellers are pretty exhausted and that a bounce is likely to take place soon. If support at the 176.00 mark holds, the pair could climb back to the next area of interest at the 179.00 major psychological level. If a breakdown takes place, GBP/JPY could be in for more longer-term losses!
Reversal alert! NZD/USD seems to be forming a double bottom forex pattern on its 4-hour time frame, hinting that the long-term downtrend might already be over. The pair has yet to break above the neckline resistance at the .7600 major psychological level before confirming the potential reversal though, and stochastic is suggesting that further gains are likely. The indicator is almost in the oversold area, which means that Kiwi bears need to take a break and allow the bulls to take over. However, if price still breaks below the recent lows at .7200, the ongoing downtrend is set to resume.
Aaah… Breakout! After weeks of consolidating inside a descending triangle forex pattern, EUR/CHF finally picked a direction and broke below support. This suggests that the pair is in for further declines, possibly at least 150 pips, which is the same height as the chart formation. Before that happens, the pair might still pull back to the broken support zone for a quick retest since stochastic is starting to turn from the oversold region. If the broken support at 1.0650 holds as resistance, EUR/CHF could resume its drop to its previous lows at 1.0550 or create new ones.
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