Daily Chart Art – December 6, 2011

GBP/USD: 1-hour

GBP/USD 1-hour Chart

Lower highs and higher lows… Why, that’s a symmetrical triangle right there! GBP/USD just found resistance at the top of the triangle yesterday and looks poised to test the bottom again today. The question is: Will it hold as support or not? Stochastic is still pointing down, which suggests that pound bears could take this pair much lower, perhaps even pushing for a downside breakout. Make sure you review the School of Pipsology lesson on Trading Breakouts if you’re in the bear camp!

USD/CHF: 1-hour

USD/CHF 1-hour Chart

Remember that USD/CHF rising channel I showed y’all last week? Well, it’s holding like a boss! The pair found support at the bottom of the channel and bounced right back to the middle. It could still climb and test the top of the channel again, but those dojis and spinning tops could mean that buyers are losing steam. Then again, stochastic is still heading for the overbought region, hinting that there’s some upward momentum left.

GBP/JPY: 1-hour

GBP/JPY 1-hour Chart

Now here’s a neat 100-pip range that’s been holding for guppy. The pair has been pacing back and forth between support near 121.50 and resistance just below the 122.50 minor psychological level. The pair just bounced from support but is still lingering at the bottom of the range. Stochastic just climbed out of the oversold area, which implies that pound bulls could charge and take GBP/JPY back up to the 122.50 area.

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.