If you’re lookin’ for short-term chart patterns on the pound, then you may wanna check out today’s intraday charts update ‘coz I’ve got a triangle on GBP/AUD and a channel on GBP/JPY.
GBP/AUD has been trading sideways recently. But if we connect the most recent peaks and troughs, we can see that a fresh symmetrical triangle pattern has formed.
As y’all probably know by now, a symmetrical triangle is just as likely to the upside as the downside. We therefore don’t really have a strong directional bias on the pair. In fact, it would even be a prudent move to prepare for both upside and downside scenarios.
Just note, though, that a topside breakout needs to clear 1.7700, ideally on strong bullish momentum. Otherwise, the risk remains high that the breakout might end up failing and become a fakeout. As for a downside breakout move, it should ideally smash lower past 1.7400 in order to confirm the break.
If trading breakouts ain’t really your thing, then you may like that there ascending channel on GBP/JPY’s 1-hour chart.
Y’all better get ready to start lookin’ for opportunities to go short since the pair is currently making its way lower towards the channel’s support, which should be at or just above the area of interest at 146.90.
And looking at our technical indicators, we can see that stochastic is just about to reach oversold territory. Them moving averages, meanwhile are in uptrend mode and it even looks like the 100 SMA may potentially act as dynamic support. Our technical indicators therefore support the idea that the pair may be moving back up again soon.
However, y’all may wanna keep an eye on the area of interest at 147.90 since there seems to be a lot of selling interest there.
And as always, just be reminded that there’s always a risk that the pair may stage a downside channel breakout. A downside break would need to move lower past 146.00 in order to validate the breakout move, though.
Anyhow, y’all just make sure to practice proper risk management as always, a’ight? Peace out!