Yo! If you’re looking for short-term chart patterns, then I’ve got yo fix ‘coz I’m serving up a channel on GBP/USD and a pennant on GBP/NZD in today’s intraday charts update.
An ascending channel has recently formed on GBP/USD’s 1-hour chart. And as y’all can see, the pair is currently making its way down after testing the channel’s resistance at 1.1300.
Before y’all start lookin’ for opportunities to go short on the pair, do note that bulls appear to have entrenched themselves at 1.3030. It would therefore probably be safer if y’all wait until the pair moves lower past 1.3030 before going short.
And since stochastic is already signaling oversold conditions and all that, that also means that there’s a higher-than-average chance for a topside channel breakout, so keep on your toes. The pair would still need to clear 1.3160 in order to validate a topside channel breakout, though.
If trading breakouts is more your thing, then you may like what I’ve got on GBP/NZD’s 1-hour chart.
As y’all can see, GBP/NZD recently surged higher, but encountered resistance at 2.0430 and began trading sideways. The pair’s price action is tapering to a point, though. And in the process, a bullish pennant appears to have formed.
As the name implies, a bullish pennant is a bullish chart pattern. Our main directional bias is therefore to the upside. And we’re waiting for the pair to clear 2.0430, ideally on strong bullish momentum.
And if the pair does stage a topside breakout, then the resulting rally could potentially last for a whopping 780 pips, based on the height of the pennant’s mast or staff, which started at 1.9650.
However, there’s always a risk that the pair may break to the downside instead. And if the pair does that and moves lower past 2.0200 on strong bearish momentum, then that likely means that bears are gunning for 1.9820 and 1.9650.
Whichever scenario plays out, y’all just make sure to practice proper risk management as always, a’ight?