The first item on today’s menu is that there ascending channel for GBP/NZD. The pair has been steadily trending higher, as y’all can see. Unfortunately, the pair has already reached the mid-channel area, so going long now may be a bit too risky. But fortunately, stochastic is already signaling overbought conditions, so sellers may start jumping in soon to send the pair lower for a test of the channel’s support area, which may give us an opportunity to go long on the pair.
Next on our list is that there ascending triangle for GBP/CHF. As y’all can see, GBP/CHF’s uptrend has been interrupted because it has found resistance at 1.3080. An ascending triangle is normally a bullish pattern. But given that 1.3080 is a price area with significant market interest, even on the higher time frames, there’s also the possibility that resistance may hold and send the pair lower instead. The triangle is about 150 pips tall, so a breakout move in either direction could potentially last for the same amount. Although a topside breakout past 1.3080 would be a significant event, so a topside breakout may likely last longer.
Finally, we’ve got a potential ascending channel for GBP/AUD’s 1-hour chart. I say “potential” because the chart pattern hasn’t been validated yet, given that the pair has yet to bounce higher and test the channel’s resistance area. And while the moving averages seem to be supportive of an uptrend, stochastic is about to reach overbought territory, so there’s also a chance that the pattern may get invalidated. There’s even a chance that the bears will stage a downside move instead. 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.