GBP/NZD has been slowly recovering after a long fall. Do note, however, that a rising wedge pattern has formed on the pair’s 1-hour chart. A rising wedge is a bearish pattern, so chances are good that the pair may extend its bearish journey. Our technical indicators don’t seem to agree with further moves to the downside, though, since stochastic is presently signalling oversold conditions. Meanwhile, the moving averages have already crossed-over into uptrend mode, and the 100 SMA even seems to be acting as dynamic support to boot.
As y’all can see on that there chart, GBP/CAD has been steadily trending higher while bouncing up and down in an ascending channel. And as I always say, one of the more conservative ways to play an ascending channel is to look for opportunities to go long when price is close to the channel’s support area. And lucky us since price is just about to test the channel’s support area. Our technical indicators are looking good as well, since stochastic is indicating oversold conditions while the moving averages are in uptrend mode. Do be careful, though, since that bearish Fibonacci setup that we identified back on Tuesday hasn’t been invalidated yet.
A rather massive symmetrical-ish triangle has formed on GBP/USD’s 1-hour chart, as you can see above. The pair could break out in either direction, and if a breakout does occur, then the resulting move could potentially last for a whopping 700 pips. Presently, however, probability seems skewed towards an upside breakout, given that price seems to be respecting a rising trend line (dashed line). Also, the moving averages are indicating an uptrend while stochastic is milling about in oversold territory. But for those who are bearish on the pair, keep an eye on that rising trend line, since a break below that could be an opportunity for a short-term short.
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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.