Late last week, we saw GBP/USD move higher after testing significant Fibonacci retracement levels. With another bullish flag forming, it looks like we’re in for another rally! If you’re bullish on GBP/USD, then watch price action carefully. A convincing break AND close above 1.6050 could lead to a strong bullish rally.
Boy, oh boy. It looks like EUR/GBP bulls are running out of steam and might need to take a break from the recent rally. The pair seems be pulling back to the former resistance level at the .8050 level, which could serve as support from now on. When I drew Fibonacci retracement levels, I also saw that the broken resistance lined up nicely with the 50% level!
After Gangnam Styling to the tune of a rising trend line for a few months, USD/CAD bulls seem to have finally exhausted themselves and gave way to the bears yesterday. The rising trend line has broken down and it seems that the pair may start heading lower! If you’re part of the bear camp, you could possibly ride the move down towards the .9800 handle, especially since the Stochastic has yet to show oversold conditions.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.