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Looking to take advantage of thin liquidity and potentially higher volatility during the holidays?

Check out GBP/NZD and EUR/JPY bracing for big moves!

GBP/NZD: 1-hour

GBP/NZD 1-hour Forex Chart

GBP/NZD 1-hour Forex Chart

Breakout alert!

GBP/NZD is currently stuck inside a symmetrical triangle with its lower highs and higher lows… but not for long.

The consolidation is getting tighter, which means that a breakout is due soon. So which way will it go?

Stochastic isn’t offering strong directional clues at the moment, as the oscillator is on middle ground to reflect sideways price action.

Moving averages aren’t all that helpful either, but it’s worth noting that the pair is trading above both technical indicators. This means that the 100 SMA and 200 SMA might keep holding as dynamic support levels, keeping losses in check.

If that’s the case, pound bulls could charge past the triangle top around 1.9400 and go for a rally that’s the same height as the triangle pattern.

However, if sellers regain the upper hand, we might just see a breakdown below the 1.9300 triangle support and a selloff that’s as tall as the chart formation.

That’d be around 400 pips yo!

EUR/JPY: 1-hour

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Who’s up for a classic break-and-retest play?

I’m seeing one that’s unfolding on the hourly time frame of EUR/JPY, as the pair is pulling up from its breakdown below the ascending triangle support.

Applying the Fib retracement tool on this move shows that the 50% level lines up with the broken channel bottom around the 145.00 major psychological mark.

A higher pullback could reach the 61.8% Fib at 145.22 while a shallow correction could already find sellers at the 38.2% Fib. If any of these are able to keep gains at bay, EUR/JPY could resume the slide to the swing low or lower.

Stochastic has a bit more room to climb before reaching the overbought zone to reflect exhaustion among sellers, so the correction could keep going.

Also, the 100 SMA has yet to cross below the 200 SMA to confirm that bearish vibes are present. These indicators are near the 50% Fib to add to its strength as a ceiling, too!