Our stroll down memory lane ain’t done yet, peeps! For today’s intraday charts update, we’ll be checking up on our old setups on EUR/GBP and GBP/JPY. And it goes without saying that we’ll be lookin’ for fresh plays as well.
We found that there symmetrical triangle on GBP/JPY’s 1-hour chart way back on June 22.
And since then, the pair has broken higher and then initially hesitated at the key area at 143.60 that I told y’all to keep an eye on before climbing higher.
If you jumped in with a long at 143.60, then congratulations on bagging 280+ pips. But if you were gangsta enough to jump in at the breakout point, then congratulations on your 470+ pips. You got game, dawg! Aww, yea! We got bank! Time to buys some new threads! Aww, yea!
Anyhow, the pair is approaching a major resistance area at 146.90, so there’s a chance that the pair may start moving back down again.
And if there’s gonna be a pullback, then the three likely pullback area candidates are at 145.80, 145.00, and 143.60.
Using our Fibonacci tool, we can see that 143.60 is the most conservative since it lines up rather nicely with the 50% retracement level. Also, the 100 SMA may act as dynamic support if or when the pair does get there. In any case, just make sure to practice proper risk management, a’ight?
If y’all can still recall, we had an ascending channel on EUR/GBP way back on June 15.
Unfortunately, the pair started trading sideways, so the channel got invalidated. Taking the most recent price action into account, however, we get that there ascending triangle.
An ascending triangle is a bullish chart pattern, so we be lookin’ mainly to go long on the pair.
And if the pair does break past resistance at 0.8870, then the pair will likely have enough momentum for a 200-pip rally.
As usual, however, just note that there’s always a slim chance that the pair may break to the downside instead. The pair needs to clear both 0.8730 and 0.8670 before a downside breakout is validated, though, so them bears got a lot of work to do if they wanna attempt a downside break.