Daily Forex Chart Art – Feb. 3, 2015

GBP/USD: 1-hour

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

Huddle up, breakout traders! You gotta take a look at this descending triangle forex chart pattern on GBP/USD’s 1-hour time frame! The pair looks prime for a breakout in either direction, as price has consolidated tightly inside the chart pattern. Stochastic is moving up, hinting that a potential upside break is possible and that further gains are in the cards. A rally could last by around 200 pips, which is the same height as the formation. Similarly, a downside break could lead to a 200-pip selloff if pound bears take over.

EUR/USD: 1-hour

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

Can’t get enough of ’em triangles? Check out this symmetrical one forming on EUR/USD’s 1-hour forex chart! The pair looks ready to break out too, as price is moving towards the end of the triangle pattern already. Stochastic is on middle ground though, barely offering any clues on which direction the pair could go. An upside break could lead to as much as 150 pips in gains, which is the same size as the triangle, while a downside break could spur a 150-pip drop. If you’re planning on taking a straddle setup, make sure you review our lesson on How to Trade Breakouts so you can set those orders properly!

USD/CAD: 1-hour

USD/CAD 1-hour Forex Chart

USD/CAD 1-hour Forex Chart

If you’d rather trade forex retracements, then you might like this potential trend play on USD/CAD’s 1-hour forex chart. After the pair’s stellar climb in the past few days, price is showing signs of a pullback, possibly until the area of interest around the 1.2500 major psychological support. This is very close to the 61.8% Fibonacci retracement level, which might serve as the line in the sand for any short-term selloff. A bounce from this region could lead to a move back to the previous highs near the 1.2800 major psychological resistance if the uptrend stays intact.

Forex 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.