GBP/USD has been trading sideways while respecting resistance at 1.4730 and support at 1.4380, which gives us a very wide 350-pip trading range or rectangle to play with. The pair is about to test the rectangle’s support area at 1.4380, so better get ready if you’re planning to trade the range by buying at support. Stochastic also looks promising since it’s moving back up again after visiting the oversold region. Do note that the halfway point (dotted line) seems to be well-defended, though, since the pair got rejected without testing the rectangle’s resistance area first.
Is GBP/CHF in for more downside moves? Well, looking at that there chart, you can see that a descending channel has now formed, and it just so happens that price recently bounced off the channel’s resistance area. In addition, the moving averages are clearly in downtrend mode. Not only that, it also looks like the pair is pushing off the 1.3960 handle (dashed line), which is a price area with very significant market interest. The only worrying thing is that stochastic is about to reach oversold territory. It’s still pointing down, though, so bears may not be out of steam just yet.
The price action in GBP/AUD’s 1-hour forex chart is pretty similar to that of GBP/CHF’s, as y’all can probably see, so much so that a descending channel has also formed. The moving averages are also signalling a very healthy downtrend while stochastic is about to reach the oversold area. Price also looks like it’s bouncing off the channel’s resistance area. The pair is also moving past the 1.9550 minor psychological level (dashed line). The aforementioned level is a price area with major market interest, even on the higher time frames, which helps to support our bearish bias. As usual, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
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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.