Daily Chart Art – October 24, 2012

GBP/USD: 1-hour

GBP/USD Chart

First up, here’s a look at Cable. The pair has dropped more than 200 pips over the past week, but could the bearish run be coming to an end? After all, we’re starting to see some bullish divergence form, as Stochastic is making higher lows while price is making lower lows. Make sure y’all hit up our divergence trading cheat sheet before trading this one!

EUR/USD: 1-hour

EUR/USD Chart

Naw playa, that ain’t dejavu you’re experiencing! We’ve just got the same setup on EUR/USD as we did yesterday! Once again, a Fibonacci retracement setup is emerging, with the pair potentially finding resistance at the 50.0% level. For now, I suggest chillin’ like a villain and waiting for Stochastic to hit overbought territory and for some reversal candlesticks to form before putting up a short position.

USD/CHF: 1-hour

USD/CHF Chart

Lastly, here’s one for all you breakout superstars. USD/CHF has just formed a bullish pennant, and seems poised to break for new highs. A candle close above the previous highs could confirm that the bulls are still on control. On the other hand, watch out for a bearish marubozu candle, as this would indicate that sellers are back in force!

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.

  • Cole

    Awesome set ups again! This is one of my favorite blogs. Keep up the posts. 🙂

    • bigpippin

      Thanks brotha!