Daily Chart Art – June 29, 2011

GBP/USD: 1-hour

GBP/USD 1-hour Chart

Let’s kick off the day with the pair Pipcrawler considers his greatest rival: Cable! It seems like the pair is currently experiencing the doldrums of summer, as it is trading inside a nice 150-pip range. With the Stochastic falling ever-so-slowly, it looks like we could see a retest of the bottom of the range. If you’re bearish on the pair, it’s a good idea to aim for former lows just above 1.5900 major psychological level.

NZD/USD: 4-hour

NZD/USD 1-hour Chart

My, my, is that a symmetrical triangle forming on NZD/USD’s 4-hour chart? Why, yes it is! Since the Stochastic is almost at overbought territory, we could see a lot of resistance soon as the pair tests the top of the triangle. If you’re bearish on the pair, this could be a chance to jump in short and ride the move down. However, if you think an upside break is imminent, wait for a candle close above the triangle to confirm your bullish bias.

GBP/JPY: 4-hour

GBP/JPY 1-hour Chart

Speaking of breakouts, GBP/JPY just had one. Yesterday, the bulls decided that they’re done with bending over for the bears and bought the pair like it was on sale! The end result was a break of the falling trend line resistance, with the pair slowly climbing to the most recent swing high at 130.50. If you’re long on the pair, then you’re in luck! The pair looks like it still can climb by another 100 pips!

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!

  • ViciousP

    I’m bullish on GBP/USD for a number of reasons.  1) It’s sitting over the 100SMA on the H1 chart, and bouncing off of it every time it drops a little. 2) Stochastics crossing bullishly on H1, H4, and D1 charts as of 10:20pm PST 3) Bullish breakouts on other pairs, such as the one you included with the Guppy.

    I’d look for it to return to resistance levels on the H1 chart, and finally break through!