Daily Chart Art – January 12, 2012

GBP/USD: 4-hour

GBP/USD 4-hour Chart

Today, we’ve got GBP/USD back in the spotlight! Revisiting this pair’s 4-hour chart, we see that price has finally reached the bottom of a falling channel, just above 1.5300. What’s interesting is that Stochastic is also indicating oversold conditions. It seems like now is as good a time as any for a reversal, don’t you think? But before you commit to going long, remember that buying this pair would entail a bit of risk as it is against the trend.

NZD/USD: 4-hour

NZD/USD 4-hour Chart

Up next is another channel on NZD/USD! This bad boy has been unstoppable in recent weeks as it has climbed higher and higher up the charts. If you’re rooting for the New Zealand dollar, you may want to consider getting a piece of this action. The area of .7900 seems like a prime spot for a retracement, so watch that level closely!

USD/CAD: Daily

USD/CAD 4-hour Chart

Finally, we have this symmetrical triangle on USD/CAD’s daily chart in our sights again. You’ll notice that over the past few months, the range that this pair has been trading in has gotten tighter and tighter. Being graduates of the School of Pipsology, y’all should know by now that when this happens, a breakout usually follows! That being said, it’d be wise to keep your eyes on this pair. Stay alert for any sharp moves above or below the triangle, homies!

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.