Word up, fam! The chart pattern fiesta ain’t over yet ‘coz I’ve got a couple more in today’s intraday charts update. This time, I’ve got a channel on EUR/GBP and a triangle on NZD/USD that y’all may wanna check out.
EUR/GBP’s recent price action has a noticeable upward tilt. And if we connect the most recent peaks and troughs, we can see that a fresh ascending channel has apparently formed.
One of the more conservative ways to play an ascending channel is to look for opportunities to go long if the pair is at or close to the channel’s support area.
But as y’all can see, the pair is currently at the channel’s resistance area. Y’all may wanna put this pair on yo watchlist, though, since the pair may be moving back down towards the channel’s support at 0.8830. After all stochastic is already signaling overbought conditions and all that.
As always, just keep in mind that there’s always a risk for a downside channel breakout. The pair would need to smash lower past 0.8800 in order to validate a breakout move, though.
NZD/USD has been consolidating into what appears to be a symmetrical triangle pattern.
A symmetrical triangle means that bulls and bears are playing a game of tug-o-war, but neither side is really winning… yet. And if one side does finally give way, then that will likely result in a breakout.
However, them bears are just as likely as the bulls to win. As such, a downside breakout is just as likely as an upside breakout. Know what I’m saying?
Whichever scenario plays out, the resulting rally or selloff will likely have enough steam for a 120-pip move.
Do note, however, that a downside breakout needs to smash lower past 0.6690 before y’all can chillax, although a move lower past 0.6740 would be an early sign that bears are taking over.
An upside move past 0.6860, meanwhile, would be an early sign that bulls are winning out. However, the pair also needs to clear 0.6920 before the breakout is considered to be the real deal.
At any rate, y’all just remember to practice proper risk management as always, a’ight?