Wassup, dawg? If you’re lookin’ for short-term setups on the pound, then I’ve got a couple of symmetrical triangle patterns on GBP/JPY and GBP/CHF that you may wanna check out.
GBP/JPY finally staged an upside breakout from the descending channel that we’ve been playing since May 29. There was no follow-through buying, however, likely because the pair failed to clear the key area of interest at 142.40 that I told y’all to keep an eye on back on June 15.
Anyhow, if we take the most recent price action into account, we can see that the pair has formed a rather big symmetrical triangle.
A symmetrical triangle could break in either direction. And if or when a breakout does finally occur, then the pair may enough steam for a whopping 480-pip move. Told y’all that there triangle is pretty massive!
And should an upside breakout occur, just remember not to chillax just yet until the pair clears 143.60. For a downside breakout, meanwhile, just make sure to keep a very close eye on the pair until it smashes past 139.20 on strong bearish momentum.
Price action on GBP/CHF’s 1-hour chart has recently been tapering into a point as well, forming that there fresh symmetrical-ish triangle pattern. This one ain’t as massive as the triangle on GBP/JPY, though.
Again, a symmetrical triangle (or symmetrical-ish in this case) could potentially break either to the topside or the downside, so y’all should refrain from being too committed on a directional bias.
And if there is a breakout, then the resulting selloff or rally may potentially last for 280 pips, which is not as big as the expected payout on GBP/JPY, but still pretty decent.
Anyhow, just make sure to observe how the pair reacts to 1.2530 if there’s an upside breakout. For a downside breakout, make sure to keep an eye on 1.2250. And as always, just make sure to practice proper risk management, aight?