I’ll start this week’s intraday charts update with a channel + pound double special, and I’ve got GBP/JPY and GBP/NZD on the menu. Get ’em while they’re still fresh!
If y’all can still recall, the pair was bouncing off the channel’s support at 148.90 back then. And if any y’all were able to ride that upswing, then congratulations on bagging some delicious pips. Aww, yeah!
Anyhow, the channel is still intact, so today’s play is therefore to play the channel again.
And the most conservative way to play that is to wait for the pair to pull back towards the channel’s support area, which should be somewhere around the 149.60 level. Just be ready to bail yo shorts if the pair continues moving lower past 148.90, though.
Also, if you’re gangsta enough, you can also try shorting at the channel’s resistance area and then gunning for 149.60. After all, stochastic is already signaling oversold conditions. That would be a countertrend trade, though, which would make it very risky.
If you’re looking for something more fresh, then check out that there descending channel on GBP/NZD’s 1-hour forex chart.
As y’all can see, the pair is currently testing the channel’s resistance area at the 1.9400 major psychological level. Y’all may therefore wanna start lookin’ for opportunities to go short. And all the more so, given that stochastic is already signaling overbought conditions and all that
Moreover, them moving averages are signaling a healthy downtrend and the 200 SMA even appears to be acting as dynamic resistance.
As always, however, there’s a risk that the pair may stage an upside channel breakout instead. And if that happens, then just be ready to bail yo shorts (or even switch bias) if the pair clears the area of interest at 1.9520.
In any case, just make sure y’all remember to practice proper risk management as always, a’ight? Peace! I’m out!