Word up, fam! I’m starting this week’s intraday charts update with a couple of triangle patterns on GBP/USD and AUD/CHF that y’all may wanna check out.
GBP/USD has recently been trading sideways. And if we connect the most recent peaks and troughs, we can see that the pair’s price action has been tapering into a point. And in the process, a symmetrical triangle pattern has formed.
A symmetrical triangle means that bulls an’ bears is fightin’ it out, but neither side is really winning… yet. And if one side does finally give way, then that will likely result in a breakout. However, them bears are just as likely as the bulls to win. As such, a downside breakout is just as likely as an upside breakout. Know what I’m saying?
Whichever scenario plays out, the resulting rally or selloff will likely have enough steam for a whopping 500-pip move.
Do note, however, that a downside breakout needs to smash lower past 1.3770 before y’all can chillax.
Meanwhile, an upside move past 1.4130 would be an early sign that bulls are winning out. However, the pair also needs to clear 1.4330 before the breakout is considered the real deal.
AUD/CHF has also been consolidating while trapped inside a symmetrical triangle.
This triangle ain’t as big as the one on GBP/USD’s 1-hour chart, though, since the triangle base is only about 170-pips high, which means that a breakout move will likely only have enough momentum for the same amount.
Anyhow, just know that the pair needs to smash lower past 0.7270 before the downside breakout is validate. An upside breakout, meanwhile, needs to move higher past 0.7440.
In any case, just make sure y’all always practice proper risk management, a’ight? Peace y’all!