Daily Chart Art – April 27, 2011

GBP/USD: 1-hour

GBP/USD 1-Hour Chart

Let’s start things off with a sweet setup on Cable, which has been trending down in the past few days. With price making lower highs and Stochastic making higher highs, it looks as though the downtrend may stay intact. If this sucker does head lower, expect it to retest the previous low at around 1.6450. However, if you feel it’s time for this trend to end, then wait for a bearish marubozu to close above the trend line before going long!

GBP/JPY: 4-hour

GBP/JPY 4-Hour Chart

Next up, we have a mouthwatering setup on GBP/JPY! With price approaching 134.00, a solid support level, it might not be long ’til we see the completion of the double bottom pattern. Stochastic seems to agree as it’s signaling overselling and is showing a bullish divergence from price, too. If you’re not yet ready to go long and you want to play it safe, you may want to wait until reversal candlesticks form in the area of the support level.

EUR/GBP: 4-hour

EUR/GBP 4-Hour Chart

Finally for dessert, we have EUR/GBP! Resistance? Check! Major psychological handle? Check! Bearish divergence? Check! The only thing missing is confirmation from candlesticks and we’ll be ready to dig in! The next major psychological handle, .8800, may be the next destination if sellers take control of the kitchen. However, it’s best to keep an eye out for any bullish marubozus around the .8900 handle. It could be a sign that buyers are cookin’ up something!

Now, I know the setups I present daily are wicked-sick. But before you get carried away with all these chart patterns and candlesticks, remember that technical analysis is only half the story. 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 Economic Roundup. Check him out, playas!