Sup, fam! I’m starting this week’s intraday charts update with a couple of triangle patterns on GBP/AUD and GBP/USD that the breakout chartists out there may wanna check out.
GBP/USD has been trading sideways recently. However the pair’s price action appears to be tapering. And if we connect the most recent peaks and troughs, we can see that a symmetrical triangle has apparently formed.
Looking at our technical indicators, we can see that them moving averages are currently in downtrend mode, while stochastic is already moving back down after briefly visiting the oversold area. They therefore favor further downside moves.
However, it would still be prudent to prepare for a topside breakout scenario as well. After all, a symmetrical triangle is just as likely to break to the topside as to the downside.
As for the key price levels to keep an eye on, a downside breakout should smash lower past 1.2480 before y’all can chillax. A topside breakout, meanwhile, needs to clear the 1.2800 major psychological level, ideally on strong bullish momentum.
As y’all can see, a symmetrical triangle has also formed on GBP/AUD’s 1-hour chart.
And as usual, just keep in mind that a symmetrical triangle can break either to the upside or the downside. It would therefore be prudent for y’all to prepare for both an upside breakout scenario as well as a downside breakout scenario.
And if the pair does break to the upside, then a move higher past 1.7740 would be an early sign that bulls are taking over. The pair would still need to clear the 1.7850 minor psychological level in order to validate the breakout, though.
A downside breakout, meanwhile, should smash lower past 1.7210, although a move lower past 1.7290 could be taken as an early sign that bears are winning out.
In any case, y’all just make sure to practice proper risk management as always, a’ight?