Yo! For today’s intraday charts update, we’ll be checking up on our old channel setups on GBP/JPY and GBP/AUD. Of course, it goes without sayin’ that we’ll be lookin’ for fresh plays as well.
GBP/JPY is the gift that just keeps on giving. We’ve been short on this pair since May 18. And we found that there descending channel on back on May 29. We then played that channel again on June 1 and yet again on June 6.
And back on June 6, I told y’all that the pair still probably has enough steam to reach 140.30. However, stochastic was already signaling oversold conditions at the time, so I warned y’all that there’s a chance that the pair may be moving back up again. Well, that’s just how it played out, dawg.
Anyhow, the pair is back at the area of interest at 142.50 that I told y’all to watch. And it just so happens that 142.50 lines up rather nicely with the channel’s resistance area. Y’all therefore better start lookin’ for opportunities to go short. And all the more so, given that stochastic is already signaling overbought conditions and all that.
If 142.50 holds as resistance, then them bulls will likely be targeting 140.30 next. Just note, however, that a strong upside break past 143.60 may be a sign that them bulls have the upper hand. So if the pair does clear 143.60, then y’all may wanna bail yo shorts or even switch bias.
We first identified that there descending channel back on May 31. And since then, the pair has attempted an upside breakout. However, the breakout ended up being a fakeout. And so the pair was pushed back into the channel.
Presently, the pair is at the mid-channel area. And the pair may be shooting for the channel’s resistance area soon since stochastic is already signaling oversold conditions and all that, so do keep an eye on the pair.
However, if the pair overshoots and stages an upside breakout, and if the pair clears 1.7330, then them bulls will likely be gunning for 1.7500 next. But if the channel’s resistance area holds or if the pair gets rejected at 1.7330, then the pair will likely be heading for 1.7090 and then 1.6900.
Anyhow, just remember to practice proper risk management, a’ight?