Daily Forex Chart Art – Oct. 29, 2014

GBP/CAD: 1-hour

GBP/CAD 1-hour Forex Chart

GBP/CAD 1-hour Forex Chart

Bounce or break? GBP/CAD is sitting at the bottom of the rising channel on its 1-hour forex chart, still figuring out where it’s headed next. Stochastic has already reached the oversold zone, indicating that a bounce might take place. In this case, GBP/CAD could climb back to the top of the channel near the 1.8350 minor psychological resistance or at least until the middle of the channel at 1.8200. On the other hand, a downside break below channel support at 1.8000 could signal the start of longer-term losses for the pair.

GBP/NZD: 1-hour

GBP/NZD 1-hour Forex Chart

GBP/NZD 1-hour Forex Chart

Here’s a simple break-and-retest forex play on GBP/NZD’s 1-hour time frame. The pair recently made a strong upside break past the 2.0300 levels and climbed close to 2.0600. However, a pullback seems to be taking place as buyers are trying to catch their breaths. GBP/NZD appears to be finding support at the 50% Fibonacci retracement level, which lines up with the former resistance area and is close to the 2.0300 handle. With stochastic moving out of the oversold zone, a bounce might be in the cards and might be enough to push price back to its previous highs.

GBP/AUD: 1-hour

GBP/AUD 1-hour Forex Chart

GBP/AUD 1-hour Forex Chart

Last but not least is an update on the GBP/AUD falling channel setup I showed y’all sometime last week! It looks like the pair is still hovering around the upper half of the range, as it tested the channel resistance once more. For now, selling pressure could be picking up, with GBP/AUD making its way back to the mid-channel area of interest. Price could find support at this region again, especially since stochastic is already indicating oversold conditions. A break below the 1.8100 levels, however, could mean that GBP/AUD might make its way back to the channel support near 1.7900.

Chart Settings

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line

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.

  • Chumpski

    GBP/CAD: I went long at 1.79617 after it broke 1.8 to see if I could learn a lesson and put my target at 1.79904 in anticipation of testing 1.8. Thanks for the tip! I love demo accounts I never would have taken that trade.