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.
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.
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.