It looks like we picked the right moment to look at GBP/USD, homies! The pair is currently testing the bottom of its rising channel, which means it’s just about ripe for a break-or-bounce trade! If you’re feeling bullish and think that the uptrend will stay intact, now would be a good time to load up on a long position. On the other hand, if you’re siding with the bears and feel that price will edge lower, wait for a clean break of the diagonal support level before setting up your short position.
Next up is NZD/USD with a rising channel of its own. This setup is pretty similar to the one on Cable, except that its uptrend isn’t as steep. The way I see it, there are two ways to play this pair. You can either go long at the bottom of the channel and aim for the previous highs, or you can wait for the previous low to break down and target a former support level. Whichever way you decide to go, make sure you practice smart risk management. Never trade without a stop loss!
With the major support level on AUD/USD finally giving way, it looks as though the path is clear for price to drop to its previous low. If you feel that the pair will continue trading lower but want a more conservative entry, you could also wait for a retest of the 1.0160 level.
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.