Yo! I’m serving up another batch of charts patterns in today’s intraday charts updates, namely a triangle on GBP/JPY and a channel on USD/CAD. Check ’em out!
That there ascending channel on USD/CAD’s 1-hour chart is truly a gift that keeps on giving.
And back then, the pair was testing the channel’s resistance area, and we were waiting for the pair to pull back towards the channel’s support, which was somewhere between the 1.3200 major psychological level and the area of interest at 1.3160.
Well, the pair did pull back. And while the pair failed to reach the channel’s support area, 1.3200 did act as support and was used as a launching pad for the pair’s upswing.
And if you were able to catch that move, then give yo self a pat on the back. Aww, yeah!
Anyhow, the pair is about to test the channel’s resistance again. And since the channel is still intact, today’s play is therefore to wait for the pair to pull back again. And this time, we expect support to form somewhere between 1.3250 and 1.3200.
But as usual, do keep in mind that there’s always a slim chance for a downside channel breakout. And a move lower past 1.3160 would validate a downside break while also signaling a potential trend change.
An ascending triangle has recently formed on GBP/JPY’s 1-hour chart. And as the name implies, an ascending triangle is a bullish chart pattern.
We’re therefore mainly bullish on the pair. And all the more so, given that them moving averages just recently crossed-over into uptrend mode
And our primary and ideal scenario is that the pair stages a topside breakout past 145.70 on strong bullish momentum, then quickly validates the topside breakout by taking out 146.30 as well.
If such a scenario plays out, then the near-term destination for the bulls will likely be 148.30.
Do note, however, that the triangle formed after a downtrend. As such, there’s also a risk that the pair may stage a downside breakout instead.
And in the unlikely event that such a scenario plays out, then a strong move lower past 144.30 would be an early sign that bears are taking over. The pair would still need to also take out the 144.00 major psychological level before the downside break is confirmed, though.
But if that happens, then that likely means that bears are gunning for the area of interest at 142.80.
Whichever scenario plays out, just make sure y’all remember to practice proper risk management as always, a’ight?