Patterns: GBP/AUD, GBP/CAD, CHF/JPY, CAD/CHF
|GBP/AUD 4H Chart: Tests 1.9600
Since the beginning of April, the Pound Sterling has declined by 4.98% against the Australian Dollar. The currency pair tested the lower boundary of an ascending channel pattern at 1.9549 on Tuesday.
Given that the exchange rate is trading near the bottom border of the channel pattern, a breakout could occur within the following trading sessions.
However, if the ascending channel pattern holds, bullish traders could pressure the currency exchange rate higher towards the weekly R2 at 2.0726 before the end of next week's trading sessions.
GBP/CAD 4H: Likely to maintain channel
The British Pound has been edging higher in a junior ascending channel pattern against the Canadian Dollar since the end of March. The currency pair bounced off the bottom border of the channel pattern at 1.6651 on March 23 and has gained about 5.51% in value during this period.
Everything being equal, the exchange rate will most likely continue to surge in the junior ascending channel pattern through the following trading sessions. The potential target will be at the 1.8200 area.
However, the weekly resistance level at 1.7651 could provide resistance for the GBP/CAD currency exchange rate in this week.
CHF/JPY 1H Chart: Descending triangle pattern in sight
The CHF/JPY currency pair has been trading within a descending triangle pattern since the beginning of March.
From a theoretical point of view, it is likely that the exchange rate could trade within the given pattern until the end of April. Then, a breakout north could follow. In this case the rate could re-test the psychological level at 114.00.
On the other hand, the currency pair could be pressured by the 55-, 100– and 200-hour SMAs in the 111.50/111.85 area and breach the given pattern south in the nearest future. Note that the pair could gain support from the Fibo 23.60% and the monthly S1 in the 100.00 area.
CAD/CHF 1H Chart: Bears could prevail
The CAD/CHF exchange rate traded upwards within a rising wedge pattern for the last four weeks. During today's morning, the rate broke the lower pattern line.
From a theoretical perspective, it is likely that some downside potential could continue to prevail in the market. In this case the currency pair could gain support from the monthly S1 located at 0.6547.
It is unlikely that bulls could prevail in the market, and the exchange rate could exceed the psychological level at 0.7600.
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