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I’m serving up a pound + channel pattern double special in today’s intraday charts update, with focus on GBP/JPY and EUR/GBP.

GBP/JPY: 1-Hour

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

That there descending channel on GBP/JPY’s 1-hour chart ain’t really fresh since we’ve been playing that channel since May 29. And the last time we took a look at that channel was on June 9.

Anyhow, the pair continued moving lower since then before support at 139.20 and snapping higher.

However, bears were waiting at the mid-channel area at 140.80, and so the pair slid back down.

Bulls have apparently entrenched themselves at 139.20, though, and so the pair got pushed back to 140.80 again.

For today’s play, we’re waiting for the pair to reach the channel’s resistance area so that we can start lookin’ for opportunities to go short.

Do note, however, that 140.80 may act as resistance again. And if resistance does form there, then the more gangsta traders out there better get ready to short. And all the more so, given that stochastic is already signaling overbought conditions and all that. Moreover, the 200 SMA could potentially act as dynamic resistance.

Even so, there’s always a possibility for an upside channel breakout, so y’all just make sure to practice proper risk management, a’ight? Also, just make sure to keep a close eye on 142.40. After all, if the pair does clear that, then that means that them bulls are in control, so y’all may wanna think about switching yo bias if or when the pair does get there.

EUR/GBP: 1-Hour

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

Okay, that there ascending channel on EUR/GBP is real fresh. And as y’all can see, the pair is currently testing the channel’s support area at 0.8730, which happens to also be price area with significant market interest in the recent past. Y’all may therefore wanna start lookin’ for opportunities to go long.

Y’all may wanna wait for a reversal candlestick pattern to form or something first, though. After all, our technical indicators don’t look so supportive for further moves to the upside just yet. Stochastic, for instance, is pointing back down again without reaching overbought territory first, which may mean that bearish interest is strong. And while them moving averages are in uptrend mode, the pair has been closing below both the 100 and 200 SMAs, which may also be sign of bearish interest.

Anyhow, if 0.8730 fails to hold as support, the bears still need to smash past 0.8670 before the downside breakout is confirmed, so just keep that in mind.

Forex Chart Settings:

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