First for today’s pound + forex chart pattern + comdolls triple combo is that there ascending channel on GBP/AUD’s 1-hour time frame. And as I always say, one of the most conservative ways to play with an ascending channel is to look for opportunities to go long near the channel’s bottom. And lucky us since that’s where price is currently at. And while the pair briefly went out of the channel, the 100 SMA was there to act as dynamic support, pushing price back into the channel. Stochastic is also indicating oversold conditions and is flattening out, so forex traders bearish on the pair may be exhausted already.
Time for a breakout? GBP/CAD has been consolidating inside a symmetrical-ish triangle pattern on its 1-hour chart, which implies that the bulls and the bears are playing a tug-o-war at the moment. As such, a strong breakout in either direction could take place sooner or later, with the potential rally or selloff lasting by about 250 pips since that is roughly the height of the triangle. Looking at our technical indicators, stochastic has just reached oversold territory while the moving averages have recently crossed-over into uptrend mode, so technical arguments seems to be favoring an upside breakout.
Finally, we’ve got another ascending channel on GBP/NZD’s 1-hour forex chart. Unlike the ascending channel setup on GBP/AUD above, price seems to have found support around the mid-channel area around the 2.2200 major psychological level. Stochastic is also already moving up and the moving averages are indicating a healthy uptrend. Given that price seems to have support already and buying interest has pushed stochastic up again without reaching the oversold area, there’s a small chance for an upside channel breakout. In any case, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals