Yo! It’s a brand new week, dawg! And I’m kickstarting this week’s intraday charts update with a Fibonacci retracement play on GBP/CHF and a channel on USD/CHF.
GBP/CHF has been moving lower recently. But as y’all can see, the pair got rejected at 1.2870 and began pulling back.
As y’all can also see, the pair is currently hesitating just above the 50% Fibonacci retracement level after hitting the area of interest at 1.2970.
And since stochastic is already signaling overbought conditions and all that, there’s a good chance that the pair may start moving lower again.
If the pair does go down, then them bears will likely be gunning for 1.2870 again. There’s an area of interest at 1.2940, though, so y’all may wanna keep a close eye on that.
Also, do note that there’s always a risk that the pair may move even higher beyond 1.2970 before moving back down again. Such a scenario seems unlikely at the moment, though.
But if the pair does move higher, then everything would still be cool as long as the pair does not clear 1.3010. If the pair does that, then that’s an early sign that bulls are gaining control. And y’all may wanna think about bailing yo shorts then.
USD/CHF’s recent price action has a noticeable upward tilt. Not only that, a potential ascending channel also appears to be forming on USD/CHF’s 1-hour chart.
This ascending channel is only a “potential” ascending channel because the pair has yet to move higher and test the channel’s resistance area in order to validate the forex chart pattern.
Since the pattern hasn’t been validated yet, then that means that going long here is extra risky. As such only the real gangsta traders may wanna play this setup. Conservative traders, meanwhile, may wanna sit this one out.
Also, do note that sellers appear to be entrenching themselves at 0.9390 and will likely attempt to push the pair below 0.9350 and 0.9310 in order to invalidate the would-be channel and signal that bears are in control.
Y’all may therefore wanna prepare for such a scenario as well. And all the more so, given that stochastic is already signaling overbought conditions and all that.
Anyhow, just make sure y’all practice proper risk management as always, a’ight?