Yo! If you’re a trend rider, then you may wanna check out today’s intraday charts update since I’m serving up a couple of short-term channel setups on GBP/JPY and NZD/CHF.
As y’all can see, GBP/JPY has been bouncing up and down inside an ascending channel while tilting to the upside. And as y’all can also see, the pair is currently moving lower after respecting the channel’s resistance area.
Bears are likely gunning for the channel’s support, which should be somewhere around the area of interest at 147.90. Y’all therefore better get ready to start lookin’ for opportunities to go long soon.
However, there’s a risk that the pair may move back up again without testing the channel’s support area since the pair is currently testing the area of interest at 148.90.
And if we look at our technical indicators, we can see that the 100 SMA appears to be also acting as dynamic support. In addition, stochastic is already signaling oversold conditions and all that, which is another technical argument for support to form and for the pair to move back up again.
And while there’s currently a very low risk that it would happen, just keep in mind that the risk of a downside channel breakout is always there. So just be ready to bail yo longs, especially if the pair validates the downside break by moving lower past 147.00.
The trend change on NZD/CHF appears to have finally been confirmed since the moving averages have already crossed-over into downtrend mode.
Not only that, a fresh descending channel has also formed on the pair’s 1-hour chart. And as luck would have it, the pair is currently testing the channel’s resistance area at 0.6870. Y’all may therefore wanna start lookin’ for an opportunity to go short on the pair.
As always, there’s always a chance for an upside channel breakout. An upside break ain’t confirmed until the pair clears 0.6910, however.
In any case, y’all just remember to practice proper risk management as always, a’ight? Peace!