Wassup, dawg? If you’re looking for short-term breakout setups, then you may wanna check out today’s intraday charts update ‘coz I’ve got a bullish pennant on GBP/USD and a triangle on EUR/CAD. Check ’em out!
GBP/USD surged higher recently, but encountered resistance at 1.3030 and began consolidating while tapering to a point. 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 1.3030 and 1.3090 on strong bullish momentum, with 1.3240 being the most likely near-term destination.
However, there’s always a risk that the pair may break to the downside instead. So if the pair smashes lower past 1.2960 and the 1.2900 major psychological level, then that likely means that bears are gunning for 1.2700.
EUR/CAD has been trading sideways for some time now. But if we connect the most recent peaks and troughs, we can see that the pair’s price action appears to be tapering into a point, forming that there symmetrical triangle.
A symmetrical triangle implies that bulls and bears are fighting it out, but neither side has a clear advantage. However, it’s only a matter of time before one side finally wins out. Bulls are just as likely to win as the bears, though. We therefore don’t have a strong directional bias on the pair.
But if a breakout does occur, then the resulting rally or sell-off would probably have enough momentum for a 330-pip run.
Just take note that a topside breakout needs to clear 1.5110, ideally on strong bullish momentum. A downside breakout, meanwhile, needs to smash lower past 1.4780. Otherwise, the risk remains high that the breakout may fail and end up being a fakeout.
In any case, y’all just make sure to practice proper risk management as always, a’ight? Peace, out!