Daily Chart Art – August 23, 2011

GBP/JPY: 1-hour

GBP/JPY 1-hour Chart

Gather ’round, yen traders! Today I spotted an ascending triangle on GBP/JPY‘s 1-hour chart, and it looks like the move is almost done. Which side will you take? An ascending triangle usually breaks to the upside, but as the School of Pipsology tells us, it can also break support and drop. Too bad Stochastic isn’t any help! If you’re bearish on the pair, you might want to wait for a clear break below the rising trendline, while the bulls can also attack just above the 127.00 handle.

EUR/GBP: 1-hour

EUR/GBP 1-hour Chart

Here’s another cross for ya! If you’ve been watching Cyclopip’s trade since last week, then you might want to tell him that there’s a nice Fib and rising trendline support on EUR/GBP‘s 1-hour chart. Heck, there’s even a bullish divergence and an oversold Stochastic signal in the works! Stochastic hasn’t crossed though, so you could still wait for more confirmation. Right now I’m thinking that the pair could slide to .8700 if the pair breaks below the support area, but it can also reach .8750 if the Fibs hold. What do you think?

USD/CHF: Daily

USD/CHF Daily Chart

Last on deck today is another Fib and divergence play, this time on USD/CHF‘s daily chart. Those who are perma-bearish on the dollar might want to jump in at the possible resistance at .8000 and the 61.8% Fib, especially since the trade idea is also supported by a bearish divergence and an overbought Stochastic signal. A clear break below .7800 might take the pair all the way to .7500, but it can also rocket to .8500 if the dollar bulls (or the SNB) takes out .8000.

Before you get carried away with all these chart patterns, 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 Forex Fundamentals. Check him out, playas!