First up on today’s fifth and last chart pattern special of the week is that there massive symmetrical-ish triangle pattern on GBP/USD’s 1-hour chart. The chart pattern is a whopping 600 pips tall, and a breakout could potentially have enough for the same number of pips. Oh, do note that a symmetrical triangle patterns could break in either direction, but given the sharp drop before the pattern emerged, a breakout to the downside is more likely. Stochastic is signalling oversold conditions already, though, so a downside breakout has a low chance of occurring for now.
GBP/CAD has been bouncing up and down inside a rectangle pattern with resistance at 1.7400 and support at 1.7050, giving us a rather wide 350-pip trading range. And presently, price is currently gunning for the rectangle’s support area, so get ready to start looking for opportunities to go long. Stochastic has already reached oversold territory, however, so there’s a chance that the pair may move back up without testing the rectangle’s support area.
Finally, we have a downside channel breakout in progress. And as y’all can clearly see, price initially broke to the downside, but the first downside breakout was faded and the pair was pushed back into that ascending channel. However, the pair used the area of interest at 0.7540 as a launching pad to dive lower. And currently, price is approaching the next area of interest at 0.7590. Aggressive forex traders mat be inclined to jump in with a short now, but more conservative forex traders may wanna wait either for a solid break past the 0.7590 price area or a break-and-retest of the said area.
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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.