I’m serving up another batch of channel patterns in today’s intraday charts update. And this time, I got my eyes on the pound, with GBP/JPY and GBP/CAD in focus.
GBP/JPY has been steadily trending lower lately, forming that there descending channel in the process.
And as y’all can see, the pair just recently bounced off the channel’s resistance at 143.50. Y’all may therefore wanna decide quickly if it’s still worth it to go short on the pair.
As usual, just keep in mind that there’s always a chance that the pair may stage an upside channel breakout.
Such a scenario seems unlikely at the moment, though. After all, our technical indicators seem to support downside moves more, given that them moving averages are indicating a healthy downtrend. Stochastic, meanwhile, is pointing back down already after touching the overbought area.
But in the unlikely event that such a scenario plays out, then a move higher past 144.30 would signal that bulls are in control and that the trend may be changing.
GBP/CAD’s price action has been tilting to the downside recently, while apparently trapped inside that there descending channel.
The pair is currently making its way up towards the channel’s resistance at 1.6870. Y’all may therefore wanna get ready to start lookin’ for opportunities to go short.
However, stochastic is already signaling overbought conditions and all that. In addition, the pair appears to have encountered sellers at the area of interest at 1.6810.
There’s therefore a chance that the pair may move back down without testing the channel’s resistance area. Waiting for the pair to test the channel’s resistance is a safer play, though.
Anyhow, just be reminded that there’s always a risk for a topside breakout. So just be ready to bail yo shorts if the pair clears 1.6960 on strong bullish momentum.
In any case, y’all just remember to always practice proper risk management, a’ight? Peace out!