Daily Chart Art – August 10, 2016

GBP/USD: 1-hour

GBP/USD: 1-Hour Forex Chart

GBP/USD: 1-Hour Forex Chart

Somebody holler at Huck because this setup is too good to miss! GBP/USD is about to hit the 1.3100 major psychological handle, which is right smack at a 38.2% Fib retracement on the 1-hour time frame. What makes the level interesting is that it’s also around a strong support area that was only recently broken. Are pound bears lurking around the corner? Read up on using Fibonacci retracements to enter trades if you haven’t done it yet!

EUR/GBP: 1-hour

EUR/GBP: 1-Hour Forex Chart

EUR/GBP: 1-Hour Forex Chart

Here’s one for the trend warriors out there! After finding resistance at the .8550 area, EUR/GBP looks set to revisit the .8500 levels. The major psychological handle lines up with a broken channel resistance, so you might want to wait around the area for long trade opportunities if you’re one of them euro bulls. Of course, you could also wait for the pair to drop to the 100 and 200 SMA levels if you think that the pound would have more fight in it before giving up more pips to the euro.

GBP/NZD: 1-hour

GBP/NZD: 1-Hour Forex Chart

GBP/NZD: 1-Hour Forex Chart

Last one for this batch of charts is another trend trade, this time on GBP/NZD’s 1-hour time frame. The pair is currently lollygagging around a falling channel support near the 1.8100 levels. The 1.8300 MaPs is the area to watch, as it lines up with not only the channel resistance but also the 100 and 200 SMA levels. Countertrend traders can start buying at current levels and take profit at the top of the channel, while the more conventional risk-takers out there can wait for the pair to hit the resistance area before jumping in.

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.