Intraday Forex Charts Update – August 3, 2016

GBP/CHF: 1-Hour

GBP/CHF: 1-Hour Forex Chart

GBP/CHF: 1-Hour Forex Chart

If you’re bearish on the pound or bullish on the Swissy, then check out that there descending channel for GBP/CHF’s 1-hour chart. Price is currently heading for the channel’s resistance area, so y’all better get ready to start looking for opportunities to go short on the pair.

However, chances are good that the pair may move back down without testing the channel’s resistance area, since price has reached the 50% Fibonacci retracement. In addition, the 50% retracement level lines up with the 1.2900 major psychological level. Moreover, the 200 SMA seems to be acting as dynamic resistance, not to mention the fact that stochastic has already reached overbought territory.

GBP/USD: 1-Hour

GBP/USD: 1-Hour Forex Chart

GBP/USD: 1-Hour Forex Chart

If you’re not particularly bearish or bullish on the pound, then that there chart pattern may be for you. And as y’all can see, the pair has been moving up and down while tapering to a point, forming that there symmetrical-ish triangle pattern. A symmetrical triangle means that the pair could break in either direction. And if a breakout does occur, then the pair could move higher or lower for a whopping 700 pips.

GBP/NZD: 1-Hour

GBP/NZD: 1-Hour Forex Chart

GBP/NZD: 1-Hour Forex Chart

No fancy chart patterns for this one. What we have here is a simple Fibonacci play coupled with a break-and-retest setup. Looking at the chart, the pair is currently testing the broken support at 1.8560 (dashed horizontal line) after getting rejected at 1.8270. If the broken support holds as resistance, then the pair could potentially move lower. And chances are good that it would serve as resistance since it lines up with the 38.2% Fibonacci retracement level.

Looking at our technical indicators, stochastic is already indicating overbought conditions while the moving averages are in downtrend mode, with the 200 SMA seemingly acting as dynamic resistance. Make sure to practice proper risk management, though, since the pair could still go higher to test the 50% retracement, which is lines up with the area of interest at 1.8660.

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.


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