Early this month we looked at The Great Britain Pound vs The Australian Dollar (GBPAUD). We are doing a follow up on the previous analysis where an ascending channel had formed. A bullish engulfing candlestick pattern formed at the bottom of the channel. After the said formation, we had bullish bias and we were patient for price action to confirm this bias.
Coming after the bullish engulfing was a period of consolidation within which indecision candles formed, namely a hammer and inverted hammer. During the past week we see a bullish candlestick with a wide spread, closing above the consolidation area confirming our bias of a bounce off the lower boundary of the pattern. We continue to monitor this pair in order to know whether bullish strength will remain dominant within the channel.
Following up on a previous analysis on the weekly chart of The New Zealand Dollar vs The Japanese Yen (NZDJPY). The analysis was done in the month of June where we saw a descending triangle breakout and retest. At the time, the retest that happened is marked in red. Price went on and further retested the lower boundary of the pattern highlighted in yellow.
Our chart pattern breakout led to lower prices where we see a strong downtrend depicted by the steep gradient of the trend. We continue to watch this pair for further price action to confirm whether the downtrend will persist.