Daily Chart Art – November 1, 2011

GBP/USD: 1-hour

GBP/USD: 1-hour Chart

Slow is smooth, and smooth is fast! GBP/USD is climbing steadily inside a rising channel on the 1-hour chart as it tries to keep the uptrend intact. The pair just reached the top of the channel before turning and aiming for the bottom of the channel again. Stochastic also turned and is moving towards the oversold area. The bottom of the channel lines up with the 1.6050 minor psychological mark and, if that area holds as support, GBP/USD could bounce to the top once more.

USD/CHF: Daily

USD/CHF Daily Chart

Just like last week’s Trade of the Week winner Jabroni pointed out in his USD/CHF trade idea, a head and shoulders pattern formed on USD/CHF’s daily chart and the pair was set to make a downside breakout. That setup played out well and yielded more than 200 pips in gains, but it’s not too late to jump in the downtrend! USD/CHF seems to be retracing to the neckline, which is in line with the 61.8% Fib and the area of interest around .8800. This could be your chance!

USD/CAD: 4-hour

USD/CAD: 4-hour Chart

Is the USD/CAD channel still holding? Happy Pip was watching this channel the other week but, unfortunately, things didn’t work out too well for her Loonie trade. After breaking below parity, USD/CAD seems to be crawling back inside the falling channel while stochastic is pointing upwards. If the pair retraces from its drop, it could climb all the way up to the 61.8% Fib at the top of the channel before resuming its downtrend. Watch out for that resistance level since it lines up with the 1.0100 handle!

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 Forex Fundamentals.

  • Lohrasb

    The  ‘GBP/USD: 1-hour’ actually applies to the 4-hour frequency!!!!!!