Daily Chart Art – October 27, 2010

USD/CHF: 4-hour

USD/CHF Chart

Rise and shine, forex fellas! Check out the rising trend line in the 4-hour chart of USD/CHF! The pair has been climbing the pip charts since it bottomed at around .9460 last week, and is now playing around the .9850 region. Will the pair tap the trend line again, or will it go straight up? The .9745 handle is looking mighty fine for the bears since the Stochastic is hanging around in the overbought region, while the 1.0000 handle looks like good target for the bulls. Watch your trades closely!

GBP/JPY: Daily

GBP/JPY Chart

“Boom Shakalaka” screamed the bulls yesterday as they bought up GBP/JPY off its lowest level in almost one year! As you can see, a sexy bullish engulfing candlestick pattern has formed right on support, indicating that the pair could be starting to reverse. If you combine this with the Stochastic climbing out of oversold territory, then we’ve got a solid case that the bulls are starting to take over! For now, look for the bulls to possibly take the pair to the 130.00 handle, which is the 38.2% Fibonacci retracement level of the most recent move down.

GBP/USD: 4-hour

GBP/USD Chart

Is it just me, or is a channel forming in the 4-hour chart? GBP/USD recently got rejected from a resistance at 1.5900, and could be on its way down as Stochastic in the overbought region suggests. Will the pair go all the way below the support at 1.5656, or will it go straight up like a tequila shot above the previous 1.5900 resistance?

  • HarryPilgrim

    I see EUR/GBP is testing trendline support at 87 pence. Would a close below .8650 confirm a downtrend towards .80?

  • HarryPilgrim

    I see EUR/GBP is testing trendline support at 87 pence. Would a close below .8650 confirm a downtrend towards .80?

  • BigPippin

    I think a close below .8700 will put the bias on the sell side HarryPilgrim!

  • BigPippin

    I think a close below .8700 will put the bias on the sell side HarryPilgrim!