Daily Chart Art – August 16, 2010

GBPUSD: Daily

PoD Chart

Aww yeah, what a great way to start the week! Feast your eyes on that beautiful setup on GBPUSD! Could it be time for a turnaround? The pair is finding support on a former resistance level just as a bullish divergence is in the works. To top it all off, a gorgeous inverted hammer just formed! Icing on the cake, baby! If the pair makes a U-turn, it could head back up to the 1.6000 handle. But if it decides to continue on its course down the charts, it could be destined for the area of 1.5150.

USDCHF: 4-hour

PoD Chart

Is USDCHF channeling lower? Judging from that descending channel on the 4-hour chart, it does look like it! After bouncing a couple of times from that minor support level around 1.0470 to 1.0480, the pair is poised to test the top of the channel again. If that area serves as resistance for USDCHF, it could send it back down to the 1.0470 level. And if that support level breaks, the pair could tumble back down to the bottom of the channel and find a floor around the 1.0300 mark.

GBPJPY: 1-hour

PoD Chart

Rangin’ like a Range Rover is what GBPJPY is doin’! For the past few days, the pair has been held prisoner to a 150-pip range. By the looks of it, GBPJPY will be testing the 133.00 support level once again. Will it manage to break through this time? If it does, it could burst through to 132.00, a former support level. But if it fails to break free, it might just head back up to retest resistance in the area of 134.50.