Yo! We originally had a Fibonacci setup for GBP/USD back on March 30. However, that setup got invalidated. But taking the most recent price action into account, we can see that a fresh symmetrical triangle has formed on GBP/USD’s 1-hour chart.
A symmetrical triangle means that them bulls and them bears are fighting it out, but neither side has a clear advantage. As such, a breakout could potentially occur in any direction. And should a breakout occur, then the resulting rally or selloff could potentially last for around 230 pips.
Just know that an upside breakout needs to clear 1.2610 before the breakout can be confirmed, though. Otherwise, chances are good that the breakout would end up being a fakeout. Know what I’m sayin? For a downside breakout, meanwhile, y’all better keep your eyes peeled on 1.2390.
As y’all can see, GBP/NZD has been steadily trading higher while bouncing up and down inside that there ascending channel. And presently, the pair is moving back down towards the channel’s support area. Y’all therefore better get ready to start lookin’ for opportunities to go long soon.
Do note, however, that there’s a chance that the pair may move back up again without ever reaching the channel’s support area. After all, stochastic is already signaling oversold conditions and all that.
Anyhow, if the pair does move back again, just make sure to keep an eye on how the pair reacts to 1.7940, since that’s a price area with significant market interest, even on the higher time frames. Just zoom out to a 4-hour or daily chart, and you’ll see. And given that market interest at 1.7940 is strong, there’s also a chance that them bears would attempt a downside breakout. The pair needs to smash past 1.7660 before the downside breakout is confirmed, though. In any case, just make to practice proper risk management, a’ight?
Forex Chart Settings:
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.