If that there descending channel seems familiar to you, then that’s probably because you were able to catch last Wednesday’s intraday chart update. By the way, the pair went down as much as 140 pips since we last saw it, so congratulations if you were able to catch the down move. For today’s play, the pair seems to be moving back up again, so y’all better keep an eye on the channel’s resistance area. However, it is kinda worrying that the pair moved back up again without ever reaching the channel’s support area, since that may mean strong bullish interest. Anyhow, just keep on your toes, okay?
Bulls have recently been trying to send GBP/USD higher. However bears appear to be well entrenched at the 1.2510 handle, so every attempt to move higher has failed. The bulls are relentless, though, so much so that the pair has been forming higher lows (troughs). In the process, what looks like an ascending triangle has formed. An ascending triangle is a bullish chart pattern, so our main directional bias is to the upside. And should the pair stage a clean upside breakout, then the resulting rally could potentially last for around 200 pips. Of course, there’s always a chance that the pair may break to the downside instead, so you may want to prepare for such a scenario as well. And always make sure to practice proper risk management, alright?
EUR/USD appears to be moving higher inside an ascending channel. But as y’all can see on that there chart, the pair seems to be trapped between 1.0650 and 1.0570, so it can be said that the pair is also trading sideways in a rectangle pattern. Anyhow, the pair is currently testing the channel’s support area. Moreover, stochastic is already indicating oversold conditions. There is therefore a better-than-average chance that the pair may move back up again. And if (or when) the pair does move higher, just make sure to observe how the pair reacts to 1.0650. If price moves past that, then that means that the pair is likely following the channel. But if the pair fails to break through 1.0650, then that could mean that the pair is trading withing the rectangle inside.
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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.