Dukascopy Bank Team
Dukascopy Bank SA
GBP/JPY 1H Chart: Broadening Rising Wedge
Comment: The pattern started to form relatively recently, namely on 15th of August or one week ago. Yesterday the pair reached the upper trend-line and since then it is sliding lower. The biggest obstacle for the pattern, to remain in effect, is around 171.50 level, as there is a cluster of support levels (200-period SMA; weekly PP; daily S3) that could possibly halt the decline. Nevertheless, the short term technical indicators are bearish, thus the previously mentioned support levels might be approached soon. Meanwhile, the pair’s sentiment is neutral, with a slight majority (51.31%) of the traders expecting a further retreat.
NZD/CAD 4H Chart: Descending Triangle
Comment: For the last couple of days the pair has been showing signs of a bearish break-out. Moreover, according to the technical indicators, a break-out to the downside is more likely than a pronounced advance. In a base scenario the descending triangle’s break-out is to the south, as it is a continuation pattern. However, at the moment the pair is testing the upper boundary at 0.9210, thus it is possible that the pair could breach the resistance and strengthen towards the weekly PP at 0.9247, before falling below the weekly S1 at 0.9191. Also the sentiment of the SWFX market is in favour of a retreat—62.24% of the traders are short.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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