Daily Chart Art – April 19, 2013

GBP/USD: 4-hour

GBP/USD Chart

Despite the recent cable selloff, the uptrend on GBP/USD’s 4-hour time frame still remains very much intact. The pair is on its way to test the bottom of the rising channel, which is close to the 1.5200 major psychological support level. Will it break or bounce? Stochastic is already moving out of the oversold region, revealing that pound bulls are starting to regain control. If that’s the case, GBP/USD could be headed for the channel resistance once again!

EUR/GBP: 4-hour

EUR/GBP Chart

My, my! It looks like Cyclopip was right about this one! EUR/GBP made a huge correction for the past few days and eventually reached resistance at the .8600 major psychological level. That’s in line with the 50% Fibonacci retracement level and is also a former support level. If you’re bearish on this pair, it’s not too late to jump in as price action is stalling on the 38.2% Fib before a potential drop back to its previous lows around .8425.

GBP/CHF: 4-hour

GBP/CHF Chart

Last but not least, here’s a potential divergence play on GBP/CHF. The pair has been diving for the past couple of weeks already but it looks like it pulled up for some air recently. The pair is currently retracing to the support turned resistance area around the 1.4250 minor psychological level and the 50% Fib. At the same time, stochastic has drawn higher highs even as price made lower highs. Take a look at the 9 Rules for Trading Divergences first if you plan to short!

To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.

Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.

  • Kelechi Agazie

    my dear, i agree with you on the ascending channel you spotted on the GBPUSD H4 chart, but if you look again, its kind of a head and shoulder formation playing out, with the neckline broken already and warming up for a downfall.

  • Tom

    Hi Pippin, Could i ask where you got the fib retrace indicator. It is perfect.