That there ascending channel on GBP/CHF’s 1-hour chart has been a gift that keeps on giving. Howevah, in last Monday’s intraday forex charts update, I warned y’all that interest at 1.2860 seems rather strong, so I presented two scenarios: (1) a continuation of the channel, or (2) a downside breakout. And obviously the second scenario played, as y’all can clearly see, unless you be blind, dawg.
Anyhow, the pair appears to be having trouble movin’ past 1.2690, so a rectangle with resistance at 1.2860 and support at 1.2690 appears to be forming. If you feel gangsta enough, you can start looking for opportunities to go long, since stochastic is about to reach oversold territory. Howevah, the moving averages have already crossed-over into downtrend mode and the rectangle hasn’t been validated yet (price needs to move back up first). There is therefore a chance that the pair may continue moving lower. Although those of y’all who are bearish on the pair should be careful until the pair smashes past 1.2600. Before that, the new downtrend is not yet confirmed, so the chance that the pair may rebound is higher.
Back on November 30, we successful played that there triangle setup and nabbed us 250 pips. Aww, yea! Howevah, we anticipated that resistance will form at 1.2690 back on December 1, so we had a Fibonacci play setup, with 1.2560 as our target pullback area. Well, that played out well as well and we nabbed an extra 130+ pips (Yea, boi!), but resistance at 1.2690 wuz just too strong, with the most recent rejection being particularly strong. Howevah, the pair has now reached the 1.2310 handle, which is a price area with significant market interest. We therefore anticipate that support may form here, with perhaps enough bulls to send the pair higher to 1.2560.
Finally, we’ve got a fresh channel setup for GBP/AUD. As y’all can see, the pair has been steadily moving higher. The pair seems to be having some trouble moving past the mid-channel area, though. And said mid-channel area also happens to be at 1.7110, the most recent resistance area. There is therefore a chance that the pair may move lower to test the channel’s support area again. Howevah, there is also a chance that the bulls may start bustin’ some caps, given that stochastic is already indicating oversold conditions. You may therefore wanna prepare for such a scenario as well. It’s called being smart, cuz. In any case, just make sure to practice proper risk management, okay? Peace!
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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.