Daily Chart Art – November 11, 2013

USD/JPY: Daily

usdjpy

USD/JPY has been stuck in a symmetrical triangle pattern for most of the year, as the consolidation kept getting tighter and tighter. Is it finally ready for a breakout? On the daily time frame, it appears that the latest candlestick has already closed above the triangle resistance, suggesting that further rallies could be in the cards. Make sure you review our lesson on trading breakouts if you plan to take this setup!

GBP/USD: 4-hour

gbpusd

Bounce or break? After that sharp selloff last Friday, GBP/USD is back to testing the bottom of the range on the 4-hour time frame. Stochastic hasn’t quite reached the oversold region just yet, which means that pound bears still have enough energy to push the pair lower. However, that long spike around the 1.5950 minor psychological support seems to suggest that bulls will fight to keep this pair in the range.

EUR/GBP: 1-hour

eurgbp

Is it just me or is a pattern starting to form on EUR/GBP? In the last three times the pair consolidated in a very tight range, a sharp breakdown occurred later on. Right now, the pair is once again moving sideways, following a quick selloff. Stochastic is pointing down, suggesting that selling pressure is still strong. Watch out for a break below that recent spike down if you’re planning to short!

To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.

Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.