The chart pattern fiesta ain’t over yet ‘coz I’ve got a bullish flag on GBP/NZD and a channel on GBP/CHF in today’s intraday charts update. Get ’em while they’re still fresh!
GBP/NZD recently surged higher but it’s bullish push abruptly stopped when it encountered fresh sellers at 1.9430.
Bulls ain’t ready to bail, though, so they entrenched themselves at 1.9320. This caused the pair to trade sideways, forming that there bullish flag in the process.
As it says on the tin, a bullish flag is a bullish chart pattern, so we are mainly lookin’ to go long on the pair. And if the pair does break higher past 1.9430, then the pair will likely have enough momentum for a whopping 400-pip move.
However, there’s also a chance that the pair may pullback instead, before going back up again.
And if apply our Fibonacci tool, it looks like the 50% retracement level is the key pullback area to watch since it sits right smack on the area of interest at 1.9220.
Moreover, if the pair pulls back there, then the pair also has to contend with that there rising trend line, which is another technical argument for support to form there.
Just be ready to bail yo longs if the pair continues moving lower past 1.9120, though, since that’s an early sign that bears are in control.
If breakouts ain’t your thing, then check out that there ascending channel on GBP/CHF’s 1-hour chart.
And as I always say, one of the more conservative ways to play an ascending channel is to look for opportunities to go long when the pair is at or close to the channel’s support area.
And as y’all can see, the pair is presently about to test the channel’s support, which should be somewhere just above 1.3400. Y’all therefore better get ready to start lookin’ for a chance to go long. And all the more so, given that stochastic is about to enter oversold territory.
As always, however, just keep in mind that there’s always a slim chance that the pattern may fail and stage a downside channel breakout instead. So just be ready to bail yo longs or even switch to a bearish bias, especially if the pair moves lower past 1.3350.
Anyhow, just make sure to proper risk management as always, a’ight?