This channel just keeps on giving! GBP/NZD has been in a steady uptrend for the past three months, moving inside a solid rising channel on its 4-hour forex chart. Price just bounced off the bottom of the channel, which lines up with the 100 SMA, and might now be headed for the top once more. Stochastic is on the way up, confirming that pound bulls are charging and ready for a test of resistance somewhere around the 2.4800 levels. Stronger bullish momentum could even lead to a spike higher but if the top of the channel keeps gains in check, another test of the channel support could be in order. The 100 SMA is above the 200 SMA anyway, suggesting that the longer-term climb could carry on.
Here’s another range that has been holding for quite some time now. EUR/GBP has been bouncing back and forth between support at the .7260 level and resistance around .7360. The pair is on its way to test the bottom of the range once more and a bounce might be seen, as stochastic is already moving out of the oversold area and indicating a return in buying pressure. At the same time, the 100 SMA crossed above the 200 SMA, hinting that the path of least resistance is to the upside for now. In that case, EUR/GBP could keep up its sideways movement and possibly test the resistance again. Just watch out for a potential breakout in either direction since this might mark the start of a trend!
Check out this fresh trend forming on GBP/AUD’s 1-hour forex time frame! The pair has been moving inside a descending channel since last week and is on its way to test the resistance just below the 2.1600 major psychological mark and the 100 SMA. The short-term moving average is safely below the longer-term 200 SMA, which means that the downtrend is set to carry on, possibly taking the pair back to the channel support around the 2.1250 to 2.1300 levels. Stochastic is already on the move down, which means that buyers are taking a break and allowing sellers to take control of price action. However, a sudden return in buying momentum could spur a break past the resistance and a reversal of the short-term selloff.
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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.