This week, the market offers some nice price action hints that could give very favorable opportunities. Charts in focus for the week are GBPUSD,GBPCHF, USDJPY and CHFJPY.
Ever since this market started trending down from the 5th of November, it hasn’t moved much, it has rather been locked in a wide trading range in a structure that looks like a triangle. I’m anticipating a breakout within the course of this week.
We can also look at this very pair from another angle by tweaking the triangle’s resistance. By doing so, we are presented with a channel that is weakly trending down.
This pair has actually broken out of a descending channel support. If this break is not a false one, then it will be a little bit safe to say that we are in for a heavy down move. My bias on this very pair is totally bearish until proven otherwise.
The USDJPY pair has been in an uptrend ever since it found a strong support in the late days of March. On Friday, it lifted off trendline support sharply after falling on it. Whether it will continue trending up or breaking down is a matter of observation within the course of this week.
On a careful look on this pair, we can actually see an up-channel brewing. Price is currently caught in the middle of the channel so there’s not much to do for now. However, if there’s a retest of channel support in the early hours of the market, it would be a good opportunity to go long. I’m slightly bullish this pair.
GBPCHF however is my pick of the week.