Chart Art: Range and Triangle Patterns on GBP/JPY and GBP/NZD

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It’s February 14 and you know what that means… We’ve only got two more weeks left before we can stop trying to spell “February!” Celebrate the occasion with a range trade on GBP/NZD and a potential triangle on GBP/JPY.

GBP/NZD: 1-hour

GBP/NZD 1-hour Forex Chart
GBP/NZD 1-hour Forex Chart

GBP/NZD is dropping from the 2.0250 minor psychological area, which isn’t surprising since the level has been an area of interest for the pair since late January.

What makes the setup tradeable today is that GBP/NZD could gain downside momentum after consolidating at the resistance.

Shorting at current levels would give you prime reward-to-risk ratios especially if you’re eyeing the big 2.0000.

If you think that the pound isn’t done gaining pips on the Kiwi, however, then you’ll definitely want to wait until GBP/NZD makes new February highs AND trades comfortably above the range before you execute them long trades.

Whichever bias you choose to trade, make sure you follow your trading plan and that you practice good risk management habits at all times!

GBP/JPY: Daily

GBP/JPY Daily Forex Chart
GBP/JPY Daily Forex Chart

Triangle alert! GBP/JPY is testing a descending trend line just above the 143.00 major psychological handle. And, as you can see, the trend line in this case represents the resistance of a potential triangle on the daily time frame.

Will pound traders bow down to the sellers for another day today? Or can the bulls push for an upside breakout this time? Remember that not all descending triangles lead to a downside breakout.

Shorting at the first signs of a successful resistance at the trend line would make for a good trade especially if Guppy drops back down to the 141.50 triangle support.

  EUR & CHF Weekly Forecast (Feb. 17 – 21)

Meanwhile, a clear break above the triangle could take the pair back to its 147.00 previous highs.

What do you think? Which way will GBP/JPY trade next?

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line

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