Daily Chart Art – June 13, 2012

GBP/USD: Daily

GBP/USD Daily Chart

Better strap on your seat belts, kids! GBP/USD is approaching a major area of interest at 1.5650! This level has been a solid support and resistance in the past, and it has held more than it has been broken! That being said, the odds seem stacked in favor of another bounce in the event that price manages to retest this level. Just remember to wait for confirmation from candlesticks before you pull the trigger!

AUD/USD: 1-hour

AUD/USD 1-hour Chart

Ranges don’t get any sweeter than this! On AUD/USD, we’ve got a clean resistance level at parity and a solid support zone at .9850. If you’re bearish for the Aussie, you may want to consider shorting at 1.0000 as Stochastic is already indicating overbought conditions. But be prepared to play support at .9850 as well, just in case price turns down before it hits parity!

GBP/JPY: 1-hour

GBP/JPY 1-hour Chart

No double top here! The setup that I pointed out in yesterday’s Chart Art didn’t materialize, but luckily, a new one popped up! Now, it seems as though GBP/JPY has formed an ascending triangle with resistance at 124.00. As we learned from the School of Pipsology, ascending triangles usually precede strong, bullish moves, so keep an eye on this pair!

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.

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