Sup, dawg! We’ll be taking a stroll down memory lane in today’s intraday charts update since we’ll be checking up on our old setups on GBP/JPY and GBP/USD. Of course, it goes without saying that we’ll be lookin’ for fresh plays as well.
If y’all can still recall, we discovered that ascending channel on GBP/JPY 1-hour chart way back on March 22.
Back then, the pair was moving lower towards the channel’s support somewhere around the area of interest at 147.90 and we were lookin’ for a chance to go long.
Well, check that out, dawg! That’s right! 147.90 did hold as support and the pair eventually moved higher for over 250 pips. And if you were able to ride that upswing, then congratulations on bagging some delicious pips. Aww, yeah!
The ascending channel is still intact. And since the pair is currently pulling back, then today’s setup is obviously to play the channel again by waiting for another chance to go long.
The pair is still some distance from the channel’s support area. However, stochastic is already signaling overbought conditions and all that. Also, the pair already appears to be hesitating at the area of interest at 148.90.
There’s therefore a chance that the pair may move back up again without testing the channel’s support. So keep that in mind.
And as usual, there’s always a risk for a downside channel breakout, so just be ready to bail yo longs if the pair moves lower past 147.90.
And if any y’all can still remember, we were looking to go long on the pair and we had our sights on 1.3990 since that price area sat right smack on the 50% Fibonacci retracement level.
And as y’all can see, that setup played out beautifully since 1.3990 held and the pair moved higher for over 250 pips, so give yo self a pat on the back if you were able to ride that. Aww, yeah! We got bank, dawg!
Anyhow, the upswing actually caused a topside breakout from our original ascending channel. But if we take the most recent price action into account, we can see that a new ascending channel has formed.
And as y’all can see the pair is about to test the channel’s support area, so y’all better get ready to start lookin’ for an opportunity to go long on the pair again.
Do note, however, that stochastic is already in oversold territory. Also, the 200 SMA appears to have acted as dynamic support. Moreover, the pair is back up above the area of interest at 1.4090.
What I’m trying to say here is that the pair may be moving back up again, even though the pair has yet to test the channel’s support. Y’all therefore decide quick if it’s worth the extra risk to jump in with a long at these levels.
In any case, just remember to practice proper risk management as always, a’ight?