Yo! I’ve got a channel on GBP/NZD and a rectangle on GBP/CAD in today’s intraday charts update. I guess that means I’m serving up a pound + comdolls + chart patterns triple combo. How cool is that?
GBP/NZD appears to be trading sideways. But if we connect the most recent peaks and troughs, we can see that the pair is tilting slightly upwards while inside that there ascending channel.
The pair is currently testing the channel’s resistance area just above 1.9180, though. And as I always say, the more conservative way to play an ascending channel is to look for opportunities to go long when the pair is at the channel’s support.
Stochastic is already signaling overbought conditions, though. Also, the pair has already tried three time to breach 1.9180. But as y’all can see, bears have held the line during the past two attempts and may hold this time around.
So, if you’re gangsta enough, you may even consider lookin’ for opportunities to go short and then shoot for the channel’s support, which should be somewhere around the area of interest at 1.8980.
Just note that going short inside an ascending channel is a countertrend setup and extra risky. So if you’re not gangsta enough, then it’s recommended that y’all put this on yo watchlist and wait it out until the pair tests the channel’s support before lookin’ for a chance to go long.
GBP/CAD has been trading sideways while apparently trapped between resistance at 1.7540 and support at 1.7430. This gives us a 90-pip trading range or rectangle pattern to play with.
And if any y’all wanna trade within the range, then heads up because the pair is currently testing the rectangle’s resistance area.
If resistance at 1.7540 holds, then the pair will likely be gunning for the rectangle’s support at 1.7430. And there’s a higher-than-average chance that resistance will hold because stochastic is already signaling overbought conditions and all that.
However, the risk for a breakout is always there. So if 1.7540 fails to hold as resistance, then that means that bulls are likely gunning for 1.7750 next. On the flip side, if the pair smashes lower past 1.7430, then that likely means that bears are trying to head towards 1.7330.
In any case, y’all just remember to practice proper risk management as always, a’ight?