Daily Chart Art – March 21, 2011

GBP/JPY: 1-hour

GBP/JPY Chart

Let’s kick things off with a look at the hourly chart of GBP/JPY! After the G7 made GBP/JPY fly like a G6 last Friday, the pair has consolidated and is now forming a bullish pennant. Y’all know what this means – we could see a breakout soon! Now, we don’t know which direction it will breakout, but with the pennant having a height of 200, we could soon see a test of 133.00 if the pair rockets up. On the other hand, if we see a break to the downside, look for 129.00 to be a potential support area.

USD/CHF: 1-hour

USD/CHF Chart

After dropping all the way to the .8950 handle last Friday, USD/CHF looks like it’s slowly inching its way up. Watch out for a potential ascending triangle though, as the pair has been having trouble getting through it for the past couple of candles. If the best forex education site is right, then we might see the pair break the rising trendline and drop below .8950. After all, Stochastic is already near the overbought area. But if the bulls hustle enough pip muscle, then we might also see the pair break resistance and climb to .9200.

USD/CAD: 1-hour

USD/CAD Chart

Is that a bearish divergence I see on USD/CAD’s 1-hour chart? Much like Happy Pip’s NZD/USD setup last week, USD/CAD is sporting a hidden bearish divergence right around a psychological handle (.9850 in this case). Aside from that, a descending triangle is supporting a short right around the time when Stochastic is about to leave the overbought region. Be careful in your trades, homies! While these beautiful signals are suggesting a short trade, the School of Pipsology also warns that the pair could break the falling trendline. In fact, it might even go up to .9950 in this case.