Yo! I’ve got a pound + safe-haven double special on today’s intraday charts update. And I’ve got a channel in GBP/CHF and a Fibonacci setup on GBP/JPY on the menu.
GBP/CHF’s price action has been tilting to the downside recently. And if we connect the most recent peaks and troughs, we can see that the pair has also been trapped inside that there descending channel.
Presently, the pair is about to test the channel’s resistance area, which should be somewhere just below the 1.3700 major psychological level. And that means that y’all may wanna get ready to start lookin’ for opportunities to go short on the pair.
Looking at our technical indicators, we can see that stochastic is already signaling overbought conditions and all that. Them moving averages, meanwhile, just recently crossed-over into downtrend mode. Moreover, the 100 SMA is currently lining up with the channel’s resistance area, which is another technical argument for resistance to form there.
Of course, there’s always a risk that the pair may stage an upside channel breakout instead. And if such an unlikely scenario plays out, then just be ready to bail yo shorts if the pair moves higher past 1.3740.
No fancy chart patterns here! Anyhow, GBP/JPY’s recent uptrend stalled and the pair even got kicked lower.
The pair recently pulled back up again, but looking at our technical indicators, it looks like bears may have the upper hand at the moment since the moving averages are already signaling a downtrend while stochastic has reached overbought territory.
And if we also apply our handy Fibonacci tool, we can see that the pair appears to be respecting the 61.8% retracement level. Not only that, the 61.8% retracemement level happens to line up with the area of interest at the 152.50 minor psychological level.
If resistance does hold and if the pair does start moving back down again, then them bears will likely be gunning for 151.50 and then 150.70.
However, just keep in mind that there’s always a risk that the bulls may win out and send the pair higher. If that happens, then you may wanna start shifting to a more bullish bias if the pair takes out 153.00.
In any case, just make sure y’all remember to practice proper risk management as always, a’ight?