Let’s kickstart this week’s intraday charts update with a couple of fresh channel setups on GBP/NZD and GBP/USD, so trend riders may wanna check out what I’ve got.
A fresh ascending channel has formed on GBP/NZD’s 1-hour chart recently, as y’all can see. And as I always say, one of the more conservative ways to play an ascending channel is to look for opportunities to go long when the pair is at the channel’s support area.
Well, lucky us, since that’s where the pair is currently at. In addition, stochastic is already signaling oversold conditions and all that, so bulls may start jumping in sooner or later.
Anyhow, if the pair does start moving back up again, then just make sure to keep an eye on how the pair reacts to 1.8860. After all, 1.8860 is a price area with significant market interest. Also, it’s been acting as resistance recently.
There’s always a slim chance for a downside channel breakout, though, so y’all may wanna bail or switch bias if the pair smashes past 1.8560 on strong bearish momentum. After all, a strong break past 1.8560 likely means that them bears are gunning for 1.8310 next.
An ascending channel has formed on GBP/USD’s 1-hour chart as well. More conservative forex traders may wanna be extra careful when looking for opportunities to go long on this pair, though, since the risk of a downside channel breakout is higher, given that the mid-channel area appears to be acting as resistance.
Looking at our technical indicators, we can also see that them moving averages just recently crossed-over into downtrend mode, which is a bearish sign and supports a downside channel breakout. Moreover, the 200 SMA appears to be acting as dynamic resistance. Meanwhile, stochastic is already pointing back down after reaching oversold territory, which likely means that bears are now in control.
The pair needs to clear 1.2850 in order to validate a downside channel breakout, though. In any case, just remember to always 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.