Daily Chart Art – March 18, 2011

GBP/USD: 1-hour

GBP/USD Chart

All of y’all who decided to take advantage of that support level I pointed out on GBP/USD yesterday might want to consider closing up your positions! Check out that falling trend line yo! Momentum seems to be shifting in favor of sellers now and the only thing standing in the way of the pair droppin’ to the floor again is the 1.6100 major psychological handle. If that level gives way, chances are the pair will settle right back down to 1.6000… but until then, holster your guns, cowboys, and wait for 1.6100 to break!

EUR/GBP: 1-hour

EUR/GBP Chart

Feast your eyes on this setup! Over the past couple of days, the range EUR/GBP has been trading in has been getting tighter and tighter… which means that it’s only a matter of time before this sucker explodes! Of course, the question is whether it’ll pop up or drop like a rock. Since this pennant is coming off a rally and because Stochastic isn’t in overbought territory yet, odds favor a bullish break. But keep in mind that this pair is already trading at a three-month high, so bulls may already be getting tired!

EUR/CHF: Daily

EUR/CHF Chart

Last, but not least, let’s end with a close look at EUR/CHF. After forming a head and shoulder formation, EUR/CHF has darted lower, nearly testing the all time lows near 1.2450. However, that long legged, doji-like candle and the bullish divergence is telling me that this pair could be on its way back up the charts. Watch out though, for the former neckline of the head and shoulders pattern at 1.2785, as it could act as a strong resistance point.