Daily Chart Art – June 3, 2011

GBP/USD: 4-hour

GBP/USD 4-hour chart

If you like using Fibonacci retracement levels in your trading, then you’ll love this nice simple setup on GBP/USD! As you can see, the pair is starting to make its way higher after it had found significant support at the 50.0% Fibonacci retracement level and the Stochastic hit oversold territory. If you’re bullish on the pair, then this might be a good time to consider buy cheap and jump in the overall longer-term trend.

AUD/USD: 4-hour

AUD/USD 4-hour chart

Next on the lineup is AUD/USD. Similar to the setup on GBP/USD, the 50% Fibonacci retracement level has held wonderfully. With the Stochastic showing upward momentum, we could see the bulls go for a retest of former highs. Keep an eye on resistance at the 1.0750 level – it could be this week’s top!

GBP/JPY: 4-hour

GBP/JPY 4-hour chart

For those trend line lovers, I’ve got something for you too! Yesterday, GBP/JPy finally managed to break the rising trend line that has been supporting since May 13. Does this mean that we’ll be seeing more losses from the pair? That seems to be the bias for now, but the 132.00 major psychological level is something you need to be careful about! It has been serving as strong support and could serve as a springboard for the bulls!

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 Economic Roundup. Check him out, playas!