Sup, fam! I’m starting the new trading week with a couple of channels on GBP/CHF and NZD/ CHF. I guess that means I’m serving up a channel + Swissy double special today.
GBP/CHF’s price action has been tilting upward for several days now. And if we connect the most recent peaks and troughs, we can see that pair has been bouncing up and down inside that there ascending channel.
The pair is currently making its way down after testing the channel’s resistance area. Y’all may therefore wanna get ready to start lookin’ for opportunities to go long on the pair. And all the more so, given that stochastic is already signaling oversold conditions and all that.
As for the price levels to watch, the pair would probably find support somewhere between 1.2920 and 1.2880.
But as usual, do keep in mind that there’s always a risk that support may fail to hold. And in the event that a downside channel breakout occurs, then a move lower past 1.2820 would validate a the breakout move. And y’all may wanna bail yo longs or even switch to a more bearish bias if that happens.
If you’re more bullish on the Swissy (or bearish on the Kiwi), then check out that there descending channel on NZD/CHF’s 1-hour chart.
And as y’all can see, the pair is already testing the channel’s resistance area. And since stochastic is already signaling overbought conditions, y’all may therefore wanna start lookin’ for opportunities to go short on the pair.
Do note, though, that the nearest area of interest is actually at 0.6420, so don’t be too surprised if the pair temporarily breaks out of the channel to test 0.6420.
However, if the pair keeps moving higher after that and clears 0.6450, then y’all may wanna think about bailing yo shorts. The pair would still need to clear 0.6470 in order to validate the topside channel breakout, though.
Anyhow, y’all just make sure to practice proper risk management as always, a’ight?