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Yo! I’ve got a couple of chart patterns for the pound in today’s intraday charts update. To be more specific, I found a triangle on EUR/GBP and a descending channel on GBP/CAD.

EUR/GBP: 1-Hour

EUR/GBP: 1-Hour Forex Chart
EUR/GBP: 1-Hour Forex Chart

EUR/GBP has been trading sideways while beginning to taper into a point, as y’all can see. In the process, a symmetrical triangle pattern appears to be forming.

A symmetrical triangle could potentially break in either direction, so we don’t really have a directional bias on the pair. Also, that means that y’all may therefore wanna prepare for both a topside and a downside breakout. Either way, the resulting rally or selloff from a breakout may have enough steam for a 190-pip move.

An upside breakout needs to clear 0.8530 on strong momentum, though. Meanwhile, a downside breakout needs to break past 0.8340 before the breakout is validated.

Looking at our technical indicators, they currently seem to favor a downside breakout, though. Stochastic, for one, is already signaling overbought conditions and all that. Meanwhile, them moving averages just recently just crossed-over into downtrend mode, with the 200 apparently acting as dynamic resistance for now.

GBP/CAD: 1-Hour

GBP/CAD: 1-Hour Forex Chart
GBP/CAD: 1-Hour Forex Chart

GBP/CAD’s bullish momentum slowly lost steam when the pair encountered resistance at 1.7770. And recently, the bears appear to have gained an edge against them bulls, given that a fresh descending channel has just formed on GBP/CAD’s 1-hour chart.

As I always say, one of the more conservative ways to play a descending channel is to look for opportunities to go short when the pair is a the channel’s resistance area. Unfortunately, the pair is currently at the channel’s support area, so more conservative traders out there may wanna sit this one out.

But for the more gangsta traders out there who are planning to go long, just note that stochastic is just about to enter oversold territory. Bulls may therefore start charging in soon.

However, if bears break past 1.7650 on strong momentum, then they’ll likely gun for 1.7420 next. In any case, just make sure to remember to practice proper risk management, a’ight?

Forex Chart Settings:

Slow Stochastic: 14, 3, 3
100 SMAs: Blue line
200 SMA: Red line

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.