Yo! Let’s end this week’s intraday charts update by checking up on our old setups on GBP/CHF and GBP/AUD. Of course, we’d be lookin’ for fresh setups as well.
We identified a symmetrical-ish triangle on GBP/CHF’s 1-hour chart way back on June 22. And since then, the pair has broken higher but failed to breach the key price area at 1.2530 that I told y’all to keep an eye on.
Anyhow, we’re still bullish on the pair. And if we take the most recent price action into account, we can see that the pair appears to have formed into an ascending channel pattern, which further reinforces our bullish bias on the pair.
And presently, the pair appears to be gunning for the channel’s support area. Y’all therefore better get ready to start lookin’ for opportunities to go long on the pair soon.
However, stochastic is already signaling oversold conditions and all that. In addition, the pair is currently testing the mid-channel area, which happens to line up rather nicely with the area of interest at the 1.2400 major psychological level.
As such, there’s a good chance that support may form here and send the pair higher. Going long here is extra risky, though, so only the more gangsta traders out there should even think about going long.
As for the invalidation of this channel, them bears have a lot of work to do since they have to stage a downside breakout and then smash past 1.2250 on strong bearish momentum. Such a scenario seems unlikely at this point, though.
If y’all can still recall, we found that there ascending channel on GBP/AUD’s 1-hour chart back on Tuesday. And since we last saw it, the pair has moved higher, found resistance at 1.7110, and then plunged back to the channel’s support area.
And since the pair is back at the channel’s support area, why not play it again? If life gives you lemons, then you go and make lemon-powered giant robots and all that. Know what I’m sayin?
Anyhow, the pair back at the channel’s support area, as mentioned before. And it looks like the channel’s support area lines up rather nicely with the area of interest at 1.6940. Moreover, stochastic is signaling oversold conditions and all that.
Given all those technical arguments, chances are good that support may form here and that the channel won’t get invalidated.
But just in case the channel does get invalidated, then the key price area to watch out for is 1.6800, since a breach past that on strong bearish momentum would mean that them bears are fully in control.
Anyhow, just remember to practice proper risk management as always, a’ight? Peace! See y’all next week!