Whattup, forex playas!
I hope you’re in the mood to trade the pound because GBP/CHF looks ready to extend a trend while GBP/AUD is brewing a reversal pattern.
Check them out!
GBP/CHF: 4-hour
GBP/CHF bulls and bears are going at it near the 1.2600 psychological handle!
As you can see, the area lines up with the 100 and 200 SMAs AND is just above a descending channel resistance on the 4-hour chart.
With a divergence sweetening the pot for the bears, will GBP/CHF extend its downtrend? Shorting at the first signs of continued selling is a good bet if you think that the pound will drop back down to its August lows.
Meanwhile, a clear break above 1.2600 could lead to a retest of the 1.2700 or 1.2800 previous inflection points.
What do you think? Which way will GBP/CHF go?
GBP/AUD: Daily
I spy with my eye a Head and Shoulders in the making!
No, I’m not talking about what aches for Millennials after a night of sleeping with bad posture. I’m talking about GBP/AUD finding support at the 1.8800 “neckline” on the daily!
A bounce from 1.8800 would open the pound to a move to the 1.8950 previous resistance “shoulder” part of the pattern.
But keep in mind that consolidations patterns like this – especially at the end of a trend – can lead to a reversal.
If the bears don’t wait for a “shoulder” and break through the 1.8800 support instead, then you also gotta be ready to trade a possible dip to 1.8650 or even 1.8500.
