If riding trends is your thing, then you may wanna check out today’s intraday charts update ‘coz I’m serving up a couple of channels on CHF/JPY and GBP/USD.
A fresh ascending channel has recently formed on CHF/JPY’s 1-hour chart. And as y’all can see, the pair is already making its way up after testing the channel’s support at 115.80.
However, y’all may still wanna put this chart on yo watchlist since the pair appears to be hesitating at the area of interest at 116.70.
And since stochastic is already signaling overbought conditions and all that, there’s a chance that the pair may pull back to retest the channel’s support, which should be at or somewhere around 116.10.
The pullback could be potentially lower, but everything should be cool as long as support forms at 115.80.
However, if the pair keeps moving lower past 115.80, then that’s a sign that bears are winning out and are likely gunning for the 115.00 major psychological level.
An ascending channel has also formed on GBP/USD’s 1-hour chart. And presently, the pair is testing the channel’s resistance area at 1.3290.
Stochastic is already signaling overbought conditions, so it’s likely that the pair be moving back down again soon. And if it does, then the likely destination would be the channel’s support at or just above 1.3130.
However, the pair would have to move lower past the 1.3200 major psychological level along the way. And if we apply our handy Fibonacci tool, we can see that the 1.3200 level sits right smack on the 50% retracement level.
Y’all may therefore wanna keep an eye on how the pair reacts to 1.3200 since there’s a chance that support may form there.
And as usual, do keep in mind that there’s always a slim chance for a downside channel breakout. The pair would need to smash lower past 1.3060 in order to invalidated the channel. But in the unlikely event that happens, then y’all may wanna think about switching to a more bearish bias on the pair.
At any rate, y’all just make sure to practice proper risk management as always, a’ight? Peace, out!