Let’s end this week’s intraday charts update by taking a stroll down memory lane as we check up on our old setups on GBP/AUD and GBP/JPY. And as always, we’ll be lookin’ for fresh setups to play as well.
The ascending channel on GBP/AUD’s 1-hour chart truly is a gift that keeps on giving!
And the last time we took a look the pair was in November 29’s intraday charts update. Back then, we were waiting for the pair to dip to either to 1.7590 or 1.7470, so that we can add to our longs again.
Well, check that out, dawg! That’s right! While the pair didn’t quite get to 1.7470, y’all should have been able to catch a ride at 1.7590. So congratulations if any y’all were able to catch the upswing to the channel’s resistance area at 1.8000. That’s a lot of delicious pips. Aww, yeah!
Anyhow, the pair is now pulling back, so we’re waiting for another opportunity to go long again. And we’ve got our sights on the channel’s support area, which should be somewhere between 1.7700 and 1.7590.
As always, just know that there’s a risk for a downside channel break. And if that happens, y’all may wanna bail yo longs if the pair smashes lower past 1.7470.
Back then, the pair was hesitating close to 150.00 major psychological level, which happened to sit right smack on the 50% retracement level. We were therefore expecting support to form, and we were waiting for an opportunity to go long.
Well, take a good look at that there chart, dawg. That’s right! As y’all can see, 150.00 did hold as support and the pair climbed higher until it found resistance at 153.40. That’s 340 pips in just two days! Hope dope is that? Anyhow, congratulations if any y’all were able to ride that.
For today’s play, we’ve got another Fibonacci retracement setup in mind. After all, the pair is currently pulling back after getting rejected at 153.40.
The pair has already cleared the 38.2% retracement level, so the 50% (151.60) and 61.8% (151.20) are the key retracement levels to watch. And between the two, the 50% retracement level seems the most likely to hold since stochastic is already signaling oversold conditions and all that.
However, the 61.8% retracement level is closer to a rising trend line that the pair appears to be respecting. Also, if the pair retraces all the way there, then both the 100 and 200 SMAs could potentially act as dynamic support.
Just be ready to bail yo longs if the pair moves even lower and clears 150.60 since that would invalidate the trend line and likely means that bears are in control.
Anyhow, just remember to always practice proper risk management, a’ight? Peace! And see y’all again next week!