Yo! First up on today’s line-up is GBP/NZD. And if y’all can still recall, we first identified that there symmetrical triangle back on January 5. Back then, we wuz lookin’ for the pair to bust out in either direction. And, bust out it did to the downside, as y’all can see. However, I also told y’all to be ready to bail yo shorts if the downside breakout move loses momentum at or just above the 1.7510. My reasonin’ back then wuz that if bearish momentum loses steam, then that means that bears are getting owned by the bulls, so there’s a chance that price could potentially reverse direction. Well, the pair smashed past 1.7510 good, and the pair dropped for almost 300 pips from the breakout point.
However, the pair has now reached the 1.7350 minor psychological area, an area with significant market interest. Also, stochastic be indicating oversold conditions already. There’s therefore a chance that the pair may start pulling back. Know what I’m sayin? And if there is a pullback, then them bulls will likely be gunning for the broken support at 1.7510.
Next, we found that there descending triangle back on January 3. A descending triangle is a bearish chart pattern, but I told y’all back then that there’s a chance that the pair may break to the upside instead. And, well, y’all can see what happened. Anyhow, we wuz expectin’ about 100 pips from the pair, but we got 120 pips instead, which is cool. Can’t really complain when we get us more pips. Know what I’m sayin?
Anyhow, price be hesitatin’ now that it reached the 0.7350 minor psychological level, which is a price area with significant market interest. Y’all can even see on that there chart how price reacted to 0.7350 in the past. Anyhow, if we, like, apply our Fibonacci tool, we can see 0.7350 happens to line up real good with the 50% retracement level, which is another technical reason for resistance to form here. Just know, that all bets are off if the pair smashes past 0.7380, ‘coz if that happens then that means that them bulls are likely gunning for 0.7490. You know what? Might as well prepare for such a scenario as well. It’s called being soo-fees-tee-kay-ted, dawg. Know what I’m sayin? As usual, though, just make sure to practice proper risk management, aight? Peace! Gotta dip!
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