Looks like GBP/USD finally picked a direction! After consolidating inside a symmetrical triangle chart pattern on its 1-hour forex chart as I’ve showed y’all last week, the pair opted for the southbound route as it broke below the 1.5650 minor psychological support. This suggests that GBP/USD could be in for a 250-pip selloff, which is around the same height as the chart pattern. Stochastic has already reached the oversold area though, which suggests that pound bears are exhausted and that a pullback might take place. If so, price could retest the broken triangle support before resuming its drop.
Up, up, here we go! EUR/NZD made a strong upside break from the triangle resistance on its 1-hour forex chart, indicating that further gains could be in the cards. Stochastic is already in the overbought area but still seems to be climbing, which means that buyers have enough energy for another push higher. Take note that the chart pattern is close to 400 pips in height so the resulting rally could be of the same size. However, once stochastic crosses down, EUR/NZD could still retreat to the triangle resistance, which might now act as support.
Now here’s a pullback already taking place on NZD/JPY’s 1-hour forex chart! Price recently made a break above the ascending triangle resistance before giving back some of its recent gains. The pair is close to testing the broken resistance zone right around the 93.50 minor psychological level, and a bounce would mean that NZD/JPY is ready to resume its climb. After all, the chart pattern is around 200 pips tall, which means that the pair might rally by the same amount. For now, stochastic is heading south, reflecting how Kiwi bears are in control while the pullback is being completed.
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.