Word up, peeps! Let’s start this week’s intraday charts update with a couple of fresh chart patterns on GBP/AUD and GBP/NZD. Hmm. I guess that means I’m serving up a charts patterns + pound + comdolls triple special today. How cool is that?
GBP/AUD has been trading sideways while respecting resistance at 1.7960 and support at 1.7760, which gives us a 200-pip trading range or rectangle pattern to play with.
And if you’re lookin’ to trade the range, then heads up because the pair is already on its way down towards the rectangle’s support.
Do note, however, that stochastic is moving back up again after visiting oversold territory. As such, there’s currently a chance that the pair may move back up without testing the rectangle’s support area. Lookin’ for opportunities to go long at current price levels is extra risky, though, so only do so if you’re gangsta enough.
Looks like price action on GBP/NZD is consolidating to a point, forming that there symmetrical triangle pattern in the process.
And as most of y’all already know, a symmetrical triangle means that bulls and bears are roughly balanced, so the pair could break in either direction. It would therefore be prudent to prepare for both an upside breakout scenario, as well as a downside breakout scenario.
As for key price levels to watch before y’all can chillax after a breakout occurs, 1.9620 is the price area to watch for an upside breakout. A downside breakout, meanwhile, needs to smash lower past 1.9320.
At any rate, y’all just make sure to practice proper risk management as always, a’ight?