Daily Chart Art – May 27, 2011

GBP/USD Daily

GBP/USD Daily chart

OMG… GBP/USD you so sexy! After testing a long term rising trend line, GBP/USD has exploded higher. In fact, the past three days’ candles have formed into a three white soldiers formation, a strong bullish signal! With Stochastic showing upward momentum, the bulls may just push this pair all the way back up to 1.6700!!!

EUR/USD 1-hour

EUR/USD 1-hour chart

Oh EUR/USD, you know you caught my eye with that rising channel! After testing the key psychological 1.4000 handle, EUR/USD has consolidated into a sweet channel. The pair is now busting higher and is about to test resistance just above 1.4200. If I was you, I’d wait for some reversal candles before going short and betting your silver dolla!

USD/JPY 4-hour

EUR/USD 1-hour chart

It’d be a crime if I didn’t holler… about that trend line break on USD/JPY! After grooving to the beat of a rising trend line, USD/JPY finally broke down lower yesterday! Now that the support level has been broken, the pair may be heading for former lows around 79.60. Watch out for Stochastic though, as it is now treading in oversold territory and indicating that the sellers may be running out of steam.

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!