GBP/AUD 4H Chart: Descending Triangle
The British Pound had been trading against the Australian Dollar in a descending channel for a month. However, after reaching the pattern’s upper trend-line for the second time, it failed to make a fully-fledged rebound and stopped at the 1.6644 level, which coincides with the channel’s reaction low. The fact that in the first hours of Monday’s trading session the currency pair started to climb upstairs indicates on formation of a descending triangle. If this assumption is true, the pair is expected to gradually surge to the triangle’s resistance line and make another rebound near the weekly R1 at 1.6940. However, there is high probability that a combination of the 55-, 100- and 200-period SMAs will push the currency rate back to the weekly PP at 1.6781.
USD/PLN 4H Chart: Channel Down
The American Dollar is depreciating against the Polish Zloty simultaneously in two descending channels. The junior inner channel formed after the currency pair bounced off from a combined resistance level set up by the senior pattern’s upper trend-line and the 100-hour SMA. In the first half of Monday the rate is expected to approach the bottom edge of the junior channel, which is secured by the monthly S1 at 3.6636. Due to this additional support line, the pair most probably is going to make another rebound and surge to the weekly PP at 3.6889. Various technical indicators support this scenario, pointing out that the currency pair is oversold. In general, it is unlikely that the pair will manage to break from the channels to the top, as the northern side is additionally protected by the 55- and 100-period SMAs.
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