I’m kickstarting this week’s intraday charts update with a couple of short-term channels on NZD/CHF and GBP/CHF. Hmm. I guess that means I’m serving up a channels + Swissy double special today.
GBP/CHF has been trading ever lower while apparently respecting a descending channel on its 1-hour chart, as y’all can see on that there chart above.
Unfortunately, the pair is presently close to the channel’s support area. However, there’s a chance the pair may be moving back up soon, given that stochastic is signaling oversold conditions and all that.
If the pair does move back up, them them bulls will likely be gunning for the channel’s resistance area, which should be somewhere around the area of interest 1.3120. However, there’s also an area of interest at 1.3070, so it’s also possible that the pair may find resistance there before going back down again.
As always, there’s a risk that the bullish upswing may be so strong that the pair ends up staging an upside breakout. And if such an unlikely scenario plays out, then y’all may wanna bail yo shorts, especially if the pair clears 1.3180 since that’s an early sign that bulls are gaining control of the pair.
There’s also another descending channel forming on yet another Swissy pair. This time, we’re looking at that there descending channel on NZD/CHF’s 1-hour chart.
The descending channel on NZD/CHF’s chart is different, though. After all, the pair is already hesitating at the area of interest at 0.6820, which is just below the channel’s resistance area.
Normally, I’d tell y’all to start lookin’ for opportunities to go short on the pair. However, stochastic is moving back up already after testing oversold territory.
There’s therefore a higher-than-average chance that the pair may stage an upside channel breakout, and y’all may wanna prepare for such a scenario as well. Although such a breakout will only be confirmed if the pair moves higher past 0.6880, ideally on strong bullish momentum.
In any case, just remember to always practice proper risk management, a’ight?