Daily Chart Art – June 17, 2016

GBP/USD: 1-hour

GBP/USD 1-Hour Forex Chart

GBP/USD 1-Hour Forex Chart

First up is a nice Fib play on Cable. The pair is about to hit the 1.4300 mark, which is near a 50% Fib retracement and 200 SMA line on the 1-hour time frame. Not only that, but stochastic is also on the overbought territory. A short trade at current levels could make for a good trade if you’re one of them pound bears. On the other hand, the bulls could wait for a break above the falling trend line before placing a long trade.

GBP/JPY: 1-hour

GBP/JPY 1-Hour Forex Chart

GBP/JPY 1-Hour Forex Chart

Here’s a nice and simple trend trade on Guppy! GBP/JPY found support at the 145.50 minor psychological handle yesterday and is currently testing the 149.40 levels. What makes this setup interesting is that it’s right smack at a falling trend line AND 100 SMA resistance on the 1-hour chart. Will these lead to the pound falling further against the yen? Time to bring out your best trend trading strategies and make pips from this one!

EUR/GBP: 1-hour

EUR/GBP 1-Hour Forex Chart

EUR/GBP 1-Hour Forex Chart

Much like Guppy, EUR/GBP is showing an opportunity for the pound bears to attack. This time around the pair is testing a rising trend line, which lines up nicely with a 200 SMA on the 1-hour time frame. What’s more, stochastic is chillin’ like a villain on the oversold region. A long trade at current levels could give you a good reward-to-risk ratio especially if you place your stops just below the trend line and aim for the previous highs. Don’t set your stops too closely though, as currency crosses like this one could show volatility like nobody’s business!

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.