Yo! It’s a fresh trading week, so let’s start it right with a couple of fresh chart patterns on GBP/NZD and NZD/JPY in today’s intraday charts update.
GBP/NZD has been trading sideways it seems. And if we connect the most recent troughs and peaks we get that there massive symmetrical triangle to play with.
A symmetrical triangle may break either to the upside or the downside. Y’all may therefore wanna prepare for both scenarios. Just keep in mind that an upside breakout needs to clear 1.9830 before the break is deemed valid. A downside break, meanwhile, needs to smash lower past 1.9090.
And for those who are gangsta enough to trade within the forex chart pattern, just know that the pair currently appears to be hesitating at one of the triangle’s sides, which happens to line up with the area of interest at 1.9300.
And since stochastic has been signaling oversold conditions and all that for a while now, there’s therefore a good chance that the pair may be moving back up to test the other side of the triangle.
NZD/JPY surged pretty hard earlier but suddenly skidded to a stop when it encountered resistance at 78.50. Bulls aren’t ready to quit yet, though, so they apparently holed up at 78.30. And so the pair began trading sideways into what looks like a bullish flag or pennant pattern.
As the name implies, bullish flags or pennants are bullish chart patters. We’re therefore lookin’ mainly to go long on the pair. And it the pair does break higher past 78.50, then that likely means that them bulls are gunning for 79.40 next.
However, stochastic has been signaling overbought conditions. There’s therefore a risk that the chart pattern may fail. So if the pair starts closing below 78.30, then that likely means that bulls are finally giving up, which may open the way for bears to push the pair lower to 77.70.
Anyhow, just remember to always practice proper risk management, a’ight?