Bounce, bounce, bounce, bounce… That’s exactly what GBP/USD has been doing in its 1-hour chart. The pair has been stuck inside a huge range, with support around 1.6360 and resistance around 1.6440. It’s sitting right at the resistance level right now, with stochastic in the overbought region. Does this mean that pound bulls are ready to retreat? Make sure you check out Pip Diddy’s U.K. economic commentary before you jump in a short GBP/USD trade!
Now here’s a daily chart for all you position traders out there! The pair’s rising trend line is still very much intact but it looks like Kiwi bulls are losing steam. Stochastic reached the overbought area and started to turn, suggesting that sellers are about to take over. Whether this is just a mere retracement or a reversal remains to be seen, but I’d stay on my toes if any of the Fib levels hold.
I know Happy Pip‘s having a tough time catching a good trade lately so I thought I’d throw in another comdoll chart for her. USD/CAD is inside a rising channel on the 1-hour chart and just fell after hitting the top of the channel. Of course it also helped that a bearish divergence formed right there. But how low can this pair go? The bottom of the channel, which is right around the .9600 handle, could hold as support and push the pair back up again. If the channel breaks though, it could be a good time to short USD/CAD.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.