GBP/JPY: 1-hour

Watch out, fellas! We might have a break-and-retest situation over here! After dipping below the 124.50 mark, it seems that GBP/JPY needed to pull up for some air before diving any deeper. Using the handy-dandy Fibonacci retracement tool reveals that the 50% level lines up perfectly with the former support area around 124.85. Better wait for stochastic to reach the overbought area and turn downwards before taking any short positions though!

GBP/USD: 4-hour

Is that a complex double top formation I'm seeing on GBP/USD's 4-hour time frame? Let me take off my groovy glasses to have a closer look. It appears that the pair has tested the 1.5700 major psychological resistance twice and has been rejected twice as well! The neckline of the formation is located near the 1.5500 minor psychological level and, if the pair breaks below that handle, it could be headed all the way down to 1.5300.

EUR/GBP: 4-hour

Now here's potential trend play that Cyclopip my want to keep his eye on. EUR/GBP has been crawling inside a falling channel on its 4-hour time frame and looks poised to test the top of its range. Stochastic is pointing upwards, which means that euro bulls could take EUR/GBP up to the .8050 minor psychological level. If that resistance level holds, EUR/GBP could have a chance to test the bottom of the channel near .7950.

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.