Market volatility can be a trader’s best friend or worst enemy, depending on a few key factors. One of those factors is identifying and properly trading obvious technical patterns.
GBPAUD is forming such a pattern on both a daily basis as well as an intraday basis. I mentioned the larger descending channel over the weekend, which is still unfolding. However, there is a smaller pattern that could present an opportunity in the meantime.
Below is the larger channel that is still intact.
Within the pattern above, there are two more trend lines that could give way to a breakout opportunity over the next few sessions. A close above the upper trend line shown on the chart below would expose channel resistance (shown above) near 2.0900 while a close below support would target the 2.00 handle.
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Consider this an opportunity within an opportunity. Therefore, those who are more interested in the larger play can wait for a break of the larger descending channel.
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