USD/CNH 4h Chart: Channel Up
|GBP/AUD 4h Chart: Channel Down
The British Pound is losing value against the Australian Dollar in the short-term descending channel. The pattern started to form after a 281-pip depreciation of the Sterling amid the unexpected outcome of the UK parliamentary elections. For now, the channel has three confirmations from the top and two confirmations from the bottom. At the beginning of this trading day, the pair has bypassed the support level formed by the monthly S2 at 1.6776 and is heading downwards to bottom trend-line of the channel. The only barrier that could prevent the pair to achieve this goal and make a premature rebound is the weekly S1 at 1.6661. In any case, it is likely that the channel will sustain until the rate makes a third confirmation from the bottom.
USD/CNH 4h Chart: Channel Up
The American Dollar is trading against the Chinese Yuan in the short-term ascending channel. The surge of the rate began after a series of appreciations of the Chinese currency in the end of May. The channel already has two confirmations from the top and from the bottom, which indicates that the existing formation is about to start to change. This scenario is supported by the fact that fluctuations of the rate are narrowing down and concentrating around the upper trend-line of the pattern, which allows drawing a channel line for a rising wedge. The combined resistance level formed by the weekly R1 and 200-period SMA near 6.8396 serves as an additional indicator that the rate most likely is going to make U-turn and start to move downwards.
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