Word up, peeps! I’m serving up a pound + comdolls + channels triple special in today’s intraday charts update, with GBP/CAD and GBP/AUD in focus. How awesome is that?
GBP/CAD has been moving ever lower recently. And as y’all can see on that there chart, the pair has been doing so while apparently respecting that there descending channel.
And as y’all should know by now, one of the more conservative ways to play a descending channel is to look for opportunities to go short when the pair is at or close to the channel’s resistance area.
Well, check out where the pair is currently at. That’s right! The pair is currently testing the channel’s resistance at 1.7980.
Y’all may therefore wanna start lookin’ for a chance to go short. And all the more so, given that stochastic is already signaling overbought conditions and all that.
As always, there’s always a risk that the pair may stage an upside channel breakout instead. So y’all just be ready to bail yo shorts if the pair continues moving higher and takes out 1.8090 since that would validate the topside breakout and signal that bulls are in control.
If we connect the most recent peaks and troughs on GBP/AUD’s 1-hour chart, we can see that the pair appears to be tilting slightly to the downside inside a rather massive descending channel.
And like our earlier setup for GBPCAD, the pair is also testing the channel’s resistance area and stochastic is already signaling overbought conditions.
Y’all may therefore also wanna start lookin’ for opportunities to go short on this pair.
If the channel’s resistance at 1.8470 does hold, then them bears will likely be gunning for the channel’s support area. However, just note that there’s an area of interest at 1.8280, which is just above the channel’s support. And that lessens the chance that the pair may reach the channel’s support area.
And again, there is always a risk that resistance may fail, paving the way for a topside channel breakout. If that scenario does play out, then a move higher past 1.8510 would be an early sign that bulls are gaining control.
In any case, just make sure y’all remember to practice proper risk management as always, a’ight? Peace!