Yo! I’m serving up a pound + comdolls + chart patterns triple special in today’s intraday charts update, with GBP/CAD and GBP/NZD in focus. How awesome is that?
As y’all can see on that there chart, GBP/CAD has been steadily trending higher while respecting that there ascending channel.
And presently, the pair is testing the channel’s support area. Y’all therefore better start lookin’ for opportunities to go long on the pair. And all the more so, given that the channel’s support area also happens to line up with the area of interest at 1.6900.
If 1.6900 does hold as support and the pair moves higher, then just make sure to observe how the pair reacts to the area of interest at 1.7000.
But in the unlikely scenario that 1.6900 fails to hold, the pair could move lower to 1.6830 before moving back up again. But if support also fails to form at 1.6830, than y’all may wanna bail yo longs, especially if the pair moves lower past 1.6780.
After trending higher, GBP/NZD found resistance at 1.9170 and began trading sideways while tapering to a point. And in the process, a symmetrical-ish triangle has formed for us to play with.
A symmetrical triangle could break either to the upside or the downside. As such, we shouldn’t really have a strong directional bias on the pair. Y’all may therefore may wanna prepare for both an upside scenario and a downside scenario.
And a breakout in either direction would likely have enough steam for a 240-pip move. Just note, though, that an upside breakout needs to clear 1.9170 on strong bullish momentum. Otherwise, the risk remains high that the breakout may end up being a fakeout. A downside breakout, meanwhile, needs to smash lower past 1.9300 before the breakout is validated and y’all can relax.
In any case, just make sure to always practice proper risk management, a’ight?