Daily Chart Art – July 29, 2011

GBP/USD: 4-hour

GBP/USD 4-hour Chart

If you’ve been watching GPB/USD with Huck this week, then you’ve probably seen the potential head and shoulders pattern on the 4-hour chart. After rejecting the 1.6450 handle, Cable found support at a rising trendline. Will 1.6400 provide any resistance and complete the pattern? A break in the rising trendline might send the pair all the way to 1.6200, but the pair might also rise above 1.6450 if the trendline support holds.

USD/JPY: 1-hour

USD/JPY 1-hour Chart

Next up, we have a lil’ triangle action! USD/JPY seems to finding a strong support in the 77.65 area with a falling trendline resistance completing a descending triangle pattern. A short order below the support area is a good idea if you’re bearish on the Greenback. But be warned! The School of Pipsology also says that descending triangles could break to the upside, which would also make the support level a good area for the bulls to buy.

AUD/USD: Daily

AUD/USD Daily Chart

Is it time to short them comdolls? Somebody call Happy Pip! Yesterday AUD/USD formed a tweezer top on the daily chart, which is conveniently near the 1.1100 area, a record high for the pair. And check it – there’s also a bearish divergence and an overbought Stochastic signal to support the trade! A stop above yesterday’s highs might provide enough room if you’re bearish on the pair while the bulls can also make a play for a potential support at the 1.1000 major psychological handle.

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!

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