Word up, peeps! I’m serving up a couple of channels on GBP/CAD and EUR/JPY that the trend riders out there may wanna check out.
GBP/CAD’s price action has been tilting clearly to the downside recently. Not only that, the pair also appears to be trapped inside that there descending channel.
Looking at our technical indicators, we can see that stochastic is already pointing back down after visiting overbought territory. The 100 SMA, meanwhile, appears to be acting as dynamic resistance.
In other words, the pair is likely to continue moving lower. But just in case the pair does pull back up before moving back down again, then y’all may wanna keep an eye on the channel’s resistance area at 1.7980.
And in the unlikely even that 1.7980 fails to hold as resistance and the pair continues moving higher past 1.8090, then y’all just be ready to bail yo shorts or even switch to a more bullish bias on the pair.
Looking at that there chart, it looks like EUR/JPY is moving back down after testing the ascending channel’s resistance area.
And y’all better get ready to start lookin’ for an opportunity to go long since the pair is approaching the channel’s support area at the 132.00 major psychological level.
However, there’s also a risk that the pair may move back up again without testing the channel’s support area. After all, the pair already appears to be hesitating at the mid-channel area. Moreover, stochastic is already signaling oversold conditions and all that.
And as usual, there’s always a small risk that the pair may stage a downside channel breakout. The pair would need to smash lower past 131.70 on strong bearish momentum before the breakout move is validated, though.
In any case, just remember to always practice proper risk management, a’ight?