Today’s intraday charts update is mainly for the trend playas out there since I’m serving up a couple of channels on GBP/JPY and GBP/AUD.
If we zoom out a bit on GBP/JPY’s 1-hour chart, we can see that a rather massive ascending channel has apparently formed.
As y’all should know by now, one of the more conservative ways to play an ascending channel is to look for opportunities to go long when the pair is at or close to the channel’s support area.
And as y’all can see, the pair just recently bounced off the channel’s support at 145.40 and is making its way back up. Y’all may therefore wanna decide quickly if it’s still worth it to look for a chance to go long on the pair.
But before you do, take note that the pair is currently hesitating at the area of interest at 147.10. Moreover, stochastic is just about to enter overbought territory.
There’s therefore a chance that the pair may move back down soon to retest the channel’s support. However, that also means that there’s also a chance for a downside channel breakout. So y’all just be ready to bail yo longs, especially if the pair smashes lower past 144.30 on strong bearish momentum.
A downside scenario seems unlikely at the moment, though, since them moving averages are about to cross-over into uptrend mode.
If you’re more bearish on the pound, then you may wanna check out that there descending channel in GBP/AUD’s 1-hour chart.
And as y’all can see, the pair is just about to test the channel’s resistance area at 1.7750. Y’all may therefore wanna get ready to start looking for opportunities to go long on the pair.
Looking at our technical indicators, we can also see that them moving averages are in downtrend mode. Stochastic, meanwhile, is already signaling overbought conditions and all that, which is another technical argument for the pair to move lower.
As usual, however, there’s always a risk that the pair may move to the upside instead. So just be ready to bail yo shorts if the pair stages an upside breakout and takes out the 1.7950 minor psychological level. Although a move higher past 1.7870 would be an early sign that bulls may be in control and attempting to change the trend.
In any case, y’all just make sure to practice proper risk management as always, a’ight?