Are the pound bulls finally running out of steam? The indecision candles on GBP/USD‘s daily chart suggest that they are! What’s making this setup even sweeter is that spinning tops have popped up near the 1.6150 handle, which is a former resistance area for Cable. And who could miss the hot bearish divergence on the chart? Waiting for Stochastic to drop below the overbought zone is a good plan if you’re planning to short the pound.
After making a convincing rally a few weeks before, USD/JPY is in consolidation mode. Could that be a bullish flag? The pattern seems to suggest that the USD/JPY bulls are revving up for another strong rally. A break of 83.00 could open the way for price to head to 84.00 and even 85.00. Let’s see if the bulls are able to push price higher soon!
Lastly, we’ve got this simple setup forming on the daily chart of USD/CHF. The pair has been finding tough support between .9220 and .9250, with a couple of indecision candles forming the past two days. It also looks like a bullish divergence in the works. Will we see buyers flood the market? I suggest waiting for a bullish marubozu candle before putting up a long position!
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.