Word up, peeps! If any y’all are looking for short-term chart patterns on the Greenback, then I’m your FX-Man ‘coz I’m serving up a channel on NZD/USD and a bullish flag on GBP/USD in today’s intraday charts update.
As y’all can see on that there chart, GBP/USD spurted higher before hitting resistance at 1.3820. Them bulls ain’t ready to give up yet, though, and so they camped out at 1.3750. And as a result, a bullish flag appears to have formed.
As the name implies, a bullish flag is a bullish forex chart pattern, so we’re mainly bullish on the pair as well. And if the pair breaks higher past resistance at 1.3820 on strong bullish momentum, then we can probably expect the pair to shoot higher for about 370 pips, based on the height of the flag and its “pole”.
However, there’s also a chance that the bulls may temporarily lose out and cause the pair to pull back.
If that scenario plays out, and if we apply our Fibonacci tool, it looks like all the Fibonacci retracement levels look like potential pullback areas to watch since they all line up rather nicely with a corresponding area of interest.
The 61.8% retracement level just above the 1.3600 major psychological level is our last line of bullish defense, though. If the pair moves lower past that, then that’s a sign that bears are in control, so y’all may wanna bail yo long if you still have ’em then.
That there ascending channel ain’t really fresh since we played it way back on January 10. And since the channel’s still intact, why not play it again? After all, if life gives you lemons, you go and make rap music about bustin’ lemons or something like that, right?
Anyhow, the pair recently bounced off the channel’s support at 0.7240 and is making its way higher. However, the pair is currently hesitating at the area of interest at 0.7280. Y’all therefore better decide quick if it’s still worth it to jump in with a long on the pair.
And before you do jump in with a long, do note that there’s currently a chance for a downside channel breakout. Given that stochastic is approaching overbought territory.
A downside breakout needs to take out both 0.7240 and 0.7190, though, so y’all will probably have time to decide to bail yo longs or not, or even switch to a bearish bias on the pair.
Anyhow, just make sure to practice proper risk management as always, a’ight?