With BTC Dominance being rejected at 66%, Alts should see a small relief rally before the Alt season really kicks in within the next few weeks, as BTC dominance will finally falling out of the bearish pennant to the downside.
On the H4 chart, we can see a bearish pennant forming.
A bearish pennant is a bearish continuation pattern.
Before entering a short position, I will wait for confirmation by a break in the support trend line. I will also be checking the indicators for cross overs (RVI, and MACD) to show signs of a bearish move and potential overbought regions of the RSI.
GBP/USD consolidating within a pennant (4 hour chart). RSI halfway through. The breakout will depend purely on fundamentals, such as USD strength and overall market sentiment/optimism around the COVID-19 and the global economy. Also pay attention earnings releases this week and any geopolitical tensions, will have an effect on the USD. Will have to wait and see...
Bullish pennant forming. I will be awaiting a break and a retest and then entering, targeting previous key levels as a take profit zone. SL will be tight and placed just inside of the pennant formation.
I don’t normally trade on a Friday, but a pennant is a pennant. Tight stops ensure that fake-out fridays doesn’t hurt too much.
RSI signalling another drop, especially on the 1 hour and 2 hour charts (GBP/USD). Could see a repeat move off the upper trendline again, back down to at least 1.255.
Of course, things don't always work out, so please do not take this as professional investment advice. Trade at your own risk - I take no responsibility for any losses.
sometimes the 50 retarcement is used depending on where the swing high was taken form it could be viewed as a 618 or a 59. Nevertheless
there was no retracement only a breakout of the triangle. so keep that in mind when looking at pennants and triangle patterns