Daily Chart Art – October 19, 2010

GBP/USD: 4-hour

GBP/USD chart

Check out GBP/USD’s latest moves on its 4-hour chart! The pair has been moving inside a rising channel for almost a couple of months already. Can it keep movin’ and groovin’ inside that channel for the next few days? GBP/USD is currently sitting at the bottom of the channel, which could serve as support. On top of that, the pair formed higher lows while the stochastic showed lower lows. That’s a bullish divergence right there! If GBP/USD bounces from the bottom of the channel, it could keep rising and find resistance at the top of the channel again.

EUR/CHF: 4-hour

EUR/CHF chart

Up up and… no way? The pair is currently on its way up the rectangle on the 4-hour chart, with Stochastic confirming the move by taking off from the oversold region. Will it hit resistance at the top of the pattern, or will it bounce around the 190-pip range? The 1.3290 level looks good as support, while the 1.3480 handle looks sweet for a resistance.

GBP/JPY: 4-hour

GBP/JPY chart

Cause baby tonight the pip-DJ’s got us falling down again” The pair has been dancin’ to Usher’s tune as it rocks from side to side in a falling channel on the four-hour chart. The pair is currently playing near the bottom of the channel with Stochastic sitting in the oversold region. Will the pound bulls put their paws up all the way to 130.50, or will the bears feel like a zombie gone back to life and push the pair below the 128.25 support?