Yo! If you’re a trend rider, then you may wanna check out today’s intraday charts update ‘coz I’m serving up a couple of channels on EUR/AUD and GBP/USD.
GBP/USD recent price action has been tilting to the downside recently. And if connect the most recent peaks and troughs, we can see the pair appears to be moving lower while bouncing up and down inside that there descending channel.
Y’all may wanna start lookin’ for opportunities to go short since the pair is already hesitating at the area of interest at 1.3420, which is just below the channel’s resistance area.
And all the more so, given that our technical indicators seem to be favoring further moves to the downside since stochastic is already moving back down after visiting overbought territory.
The moving averages, meanwhile, are still in downtrend mode. And the 100 SMA is even apparently acting as dynamic resistance to boot.
But as always, just keep in mind that there’s always a risk that the pair may stage an upside channel breakout.
Such a scenario seems unlikely at the moment. But if such a scenario does play out, then a move higher past 1.3460 would be an early sign that bulls are taking over. And if the pair keeps moving higher and takes out 1.3520, then y’all may wanna think about bailing yo shorts (or even switching to a more bullish bias).
A descending channel has also apparently formed on EUR/AUD’s 1-hour chart.
And as y’all can see, the pair has yet to test the channel’s resistance but the pair is already hesitating at the area of interest at 1.5520.
Moreover, them moving averages are still indicating a healthy downtrend while stochastic is moving back down again after briefly touching oversold territory.
Y’all may therefore wanna start lookin’ for opportunities to go short on the pair.
However, just be reminded that there’s always a chance that the pair may stage an upside channel breakout instead. The pair would need to clear 1.5620 before the topside breakout is validated, though.
Anyhow, just make sure y’all remember to practice proper risk management as always, a’ight? Peace! I’m out!