If you’re a breakout chartist, then you may wanna check out today’s intraday charts update ‘coz I found a couple of triangles on GBP/JPY and GBP/USD.
GBP/JPY has been trading somewhat sideways in the past few days. And if we focus on the most recent price action, we can see that the pair appears to be tapering into a point, giving us that there symmetrical triangle to play with.
A symmetrical triangle pattern forms when bulls and bears are fighting it out, but neither side has a clear advantage. 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. It would therefore be prudent for y’all to prepare for both an upside and a downside scenario.
Just note that the pair needs to clear the area of interest at 149.60 before an upside breakout is validated. If the pair fails to do that, then the risk remains high that the breakout may end up being a fakeout.
A downside breakout, meanwhile, should smash the 147.00 major psychological level, ideally on strong bearish momentum, before the break is confirmed and y’all can chillax.
Whichever scenario plays out, the resulting rally or selloff will likely have enough steam for a 260-pip move, based on the height of the triangle.
As y’all can see, a fresh symmetrical triangle has also recently formed on GBP/USD’s 1-hour chart.
This one’s a bit smaller, though, so the resulting breakout move will likely only have enough steam for a 230-pip move.
Anyhow, just know that the pair needs to clear 1.3290 in order to validate a topside triangle breakout. A downside breakout, meanwhile, needs to move lower past 1.3060, ideally on strong bearish momentum.
In any case, y’all just make sure to practice proper risk management as always, a’ight? Peace, out!