The chart pattern party ain’t over yet ‘coz I’m serving up another batch. And in today’s intraday charts update, I’ve got a rectangle on GBP/CHF and a channel on GBP/CAD.
Trading within the rectangle doesn’t seem to be the way to go, given the tight range. Also, the pair is currently milling about at the middle of the range.
As for breakout plays, do keep in mind that the pair is just as likely to break to the topside as the downside. But looking at our technical indicators, it seems like a topside breakout move appears to be a more probable scenario at the moment since stochastic is already signaling oversold conditions while them moving averages are in uptrend mode.
And if a topside breakout does occur, then bulls will likely be gunning for 1.2680 next. But if the pair breaks to the downside instead, bears will likely be shooting for the 1.2400 major psychological level.
GBP/CAD’s recent price action has been tilting slightly to the downside. And if we connect the most recent peaks and troughs, we can see that a descending channel has apparently formed.
And presently, the pair is testing the channel’s resistance area at the 1.7100 major psychological level. Y’all may therefore wanna start looking for opportunities to go short on the pair. And all the more so, given that stochastic is already pointing back down after visiting overbought territory.
However, do note that them moving averages are currently in uptrend mode. There’s therefore also a risk for a topside channel breakout.
And if a topside channel breakout does occur, then a move higher past 1.7170 would be an early sign that bulls are taking over. The pair would still need to clear the 1.7250 minor psychological level in order to validate the breakout move and signal a potential trend change, however.
Anyhow, y’all just make sure to practice proper risk management as always, a’ight? Peace, out!