Daily Forex Chart Art – Mar. 12, 2014

GBP/USD: 1-hour

GBP/USD 4-hour Forex Chart

GBP/USD 4-hour Forex Chart

Take a look at this trifecta of technical signals on GBP/USD! On its 4-hour time frame, the pair is still trading above a rising trend line and looks ready to test that support zone. Using the Fibonacci retracement tool on the latest swing high and low shows that this potential support lines up with an area of interest right between the 50% and 38.2% levels! On top of that, stochastic is already in the oversold region, indicating that bounce might take place soon.

USD/JPY: 1-hour

USD/JPY 1-hour Forex Chart

USD/JPY 1-hour Forex Chart

Here’s another break-and-retest situation that you probably wouldn’t want to miss. USD/JPY has recently breached a resistance level around the 102.75 level. Since then, it surged to the 103.70 mark, but dollar bulls quickly ran out of steam. USD/JPY could retrace to the broken resistance zone, which is just above the 50% Fibonacci retracement level. Stochastic is still making its way down, which suggests that the pair could dip a little lower before resuming its climb.

GBP/JPY: 4-hour

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

If you wanna jump in the pound’s uptrend but feeling iffy about shorting the dollar, then here’s a GBP/JPY setup as an alternative. The pair is also trading above a rising trend line and looks ready to make a quick test. It could find support at the broken resistance around the 171.00 major psychological level, which is very close to the trend line. Stochastic is also indicating oversold conditions and that means pound bulls are just waiting to charge!

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.

  • Chuks

    Both GJ and GU are pairs that must not be missed for the massive bullish ops they present. But I still thing GU should retest that robust 1.6580 area range base. Any bullish signal there on any time frame should be a green light for bulls and I will be going all out for 1.7050 resistance! GJ to is massively bullish but I reckon it has to retest its distribution zone around 170 area or just above it before the next swing leg. I am eagerly waiting. Otherwise, I think a scalp short is possible off current rates or more precisely off 172.80 area with a logical stop just above the round handle. Either way, those are pairs to look out for this week and beyond!

    • Big Pippin

      GBP/USD is currently at the 1.6580 area that you mentioned and GBP/JPY is about to test a rising trend line on the daily chart. The MPC minutes and UK employment data are about to be printed though, so trading these pairs are tricky. Thanks for pointing out these trades!

  • Chuks

    Yes. I have GBPUSD long thanks to a massive bullish signal off that level. I will be looking for 1.7050 in the next few sessions. GBPJPY took me out yesterday and I will stand down and watch it more closely for better clues. with eurjpy, euraud and gbpusd, I will be good. Will be looking at others for more set ups. USDJPY is still great for bulls and because of that, I still think gbpjpy will be rallying. Just that there is no obvious handle on it now.