Daily Chart Art – October 8, 2009

GBPUSD: 4-hour

PoD Chart

For the past couple of days, the GBPUSD pair has been consolidating into a symmetrical triangle. Now, it seems like the pair is poised yet again for another directional move. The bias remains to be on the downside since the formation is coming off a downtrend. It could at least go down to 1.5800, which is around its 3-month low, if it breaks down from the triangle. On the flip side, it could jump to 1.6100 if it breaks out (up) from the formation. Today’s BOE interest rate decision may be the catalyst that could send the cable either way. Watch out!

GBPJPY: 4-hour

PoD Chart

It looks like the GBPJPY pair finally found support at the previous month’s low at 139.77. Notice also the bullish divergence that formed – price made lower lows while stochastics made higher lows. A bullish divergence usually means that there is some hidden buyer power waiting to be unleashed once price hits some significant technical level. From the looks of it, the pair is aiming for previous resistance at 144.00. However, remember that the trend is our friend and a lot of sellers are probably waiting on the sidelines to sell the pair at a much cheaper price. If selling momentum proves to be too strong, we might see another break in support!

EURJPY: 4-hour

PoD Chart

That looks like a bearish flag on the EURJPY 4-hour chart… A couple of weeks ago, this pair took a sharp dive but lately it’s in consolidation mode. Support at 131.60, which was previously broken, has now turned into a resistance level. The pair has just bounced off the support level at 129.80 and seems to be making its way up. With the stochastics trying to bust out of the oversold region, the pair could head all the way up to the resistance at 131.60. But this bearish flag right here seems to be signaling that the pair is headed further down. Watch out because this pair could break below support and continue tumbling down!

  • efelicia14

    Thank you for the GBP/USD update I have a small buy order in for 100-300 pips gain between this week and next… I am so excited… But I am also going to move up my s/l b/c I am now officially a position swing trader… :D thanks

  • efelicia14

    Thank you for the GBP/USD update I have a small buy order in for 100-300 pips gain between this week and next… I am so excited… But I am also going to move up my s/l b/c I am now officially a position swing trader… :D thanks