Last week, we saw pound making a big push north wards before it met with some heavy selling that saw the currency make quite a number of pintail candlesticks on the daily time frame against the other currencies. To really understand what I am talking about here, lets look at the charts that I have prepared for all of you.
First up is the GBPUSD. We saw the pair continue its fall after making successive bearish candles. It seems that the correction is not over yet and the pair looks like it is going towards it nearest ema, the 15ema and next support level at 1.657. A reversal candle to the upside is required before we can call a long in this pair. At the moment, it is apparent that the pound bears are in control.
Next up is the GBPAUD. We can see double pin tails on the daily time frame and a potential head and shoulders pattern which is a bearish pattern. We can expect a fall from current levels back down to the 1.818 area where the pair will meet with an up trend line, and a potential support level. A break below that level can see this pair fall much lower. In the mean time , lets monitor this pair and observe whether this bearish double pin tail signals a lower price level for this pair.
GBPCAD is next and the super long pin tail is another signals that indicate to us that bears are in charge in this pair. A fall back to support at 1.806 can be expected. But do take a look at how the price behaves around the EMAs too. I am expecting some volatile moments here as we head down.
Next up is the GBPCHF. The pair has seen some volatile moments lately and the current trajectory seems to be down. I have drawn a projection triangle to show that the pair can reach the base of its up trend line and hit around 1.45 if the bearish momentum continues. The last 3 candles on the daily time frame seems to support the bearish argument. A break below last support at around 1.47 will see this pair going towards the 1.45 region.
All the best to your trading in the coming week!