Yo! We’ll be taking a stroll down memory lane in today’s intraday charts update, since we’ll be checking up on our old setups for GBP/USD and GBP/CHF. Of course, it goes without sayin that we’ll be lookin’ for fresh setups as well.
We found that there symmetrical triangle on GBP/CHF’s 1-hour chart back on April 11. And as y’all can see, the pair broke to the upside, milled about at 1.2580, the key price area I told y’all to keep an eye on, before shooting higher like a rocket.
If you were really gangsta and jumped in at the breakout point, then you were probably able to grab between 200 to 280 pips, depending on when you decided to secure yo profits. But if you were more conservative and jumped in at 1.2580, then you probably have 150 to 230 pips, which ain’t bad. Aww, yeah! We got bank, dawg!
For today’s play, we’ve got a Fibonacci retracement setup, as y’all can see. After all, the pair has been pulling back, so might as well have one, right?
The pair is currently within licking distance of the 38.2% retracement level, but all retracement levels are valid pullback areas. Y’all may therefore wanna wait for the pair to steady, or to start bouncing higher, or for a reversal candlestick pattern to form, before jumping in with a long.
However, do note that there’s a chance that the pair could ignore all the Fibonacci retracement levels and gun for 1.2650 instead. After all, the 1.2650 minor psychological level is a price area with very significant market interest, even on the higher time frames. Just switch to a 4-hour or daily chart and y’all will see what I mean.
We also had a symmetrical triangle for GBP/USD, which we identified way back on April 6.
This one is more complicated, since it broke to the downside, tried to smash past the key price area at 1.2390, failed to do so, and then used 1.2390 as a launching pad to zoom higher. The pair then stopped just right below 1.2610, the other key price area I told y’all to watch, before surging higher on strong bullish momentum.
I was able to jump in with a long at 1.2610. But if you were gangsta enough to go long when bearish momentum lost steam at 1.2390, then I gotta hand it to ya, dawg – you a real playa!
Anyhow, the pair has been consolidating lately into what looks to be a bullish flag of sorts. If that is indeed a bullish flag, then the pair probably has enough steam for another pop higher for about 300 pips or so.
However, there’s also a chance that the pair would follow a Fibonacci retracement scenario instead, with the 50% retracement level being the most likely pullback area, since it’s just above the area of interest at the 1.2700 major psychological level. In any case, just make sure to practice proper risk management, a’ight?
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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.