On GBP/USD’s 4-hour chart is a hawt lookin’ descending channel. After making a fake break of support yesterday, it appears that price is starting to head to the top of the channel. If you’re part of the bear camp, watch the 1.6200 level carefully, as it could serve as a major resistance level. After all, the Stochastic shows that the pair just hit overbought territory.
Speaking of channels, I’ve got another one for you on NZD/USD’s 4-hour chart. There’s one difference though: NZD/USD’s channel is a horizontal one! As you can see, the pair has been trading in a relatively wide range for the last couple of days. With the lower boundary of the channel holding and the Stochastic moving out of the oversold territory, will we see price climb to the top of the channel again? If you’re a range trader, you better keep a close eye on this pair!
After moving higher for a little over a week, it appears that USD/CAD’s uptrend has come to an end. Yesterday, price managed to convincingly break through the rising trend line support and post a new “lower low.” Now price has stalled, and with the Stochastic showing that conditions are oversold, we could see it pullback to the rising trend line and the Fibonacci retracement levels.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.