I know it’s Friday today, but I’d be willing to spend hours watching Cable (and I mean GBP/USD) for this setup! On the 4-hour chart I’m seeing a sweet bearish divergence right when the pair is at the top of a descending channel and Stochastic is in the overbought region. If you’re one of them bears you can short this baby all the way to 1.6250 (or even 1.6150) with your stop just above the channel. But if you’re still bullish on the pound you can also wait for a break in the channel and put a trailing stop on your trades.
The euro sure has its patterns lined up for a trip up the charts! EUR/CHF formed a hammer yesterday, which is in line with the 38.2% Fib near the 1.3000 handle. On top of that, I’m also seeing a bullish divergence and an oversold Stochastic signal. Watch out for the 1.2800 handle though. We’ll never know when those bears get the urge to drag the pair to the major support. A stop just below the 1.2800 support might be a good idea if you’re aiming for chart highs, but a break below the support also looks sweet for the bears.
Here comes another range action! On the 4-hour chart I spy with my awesome eyes a 150-range that AUD/JPY has been bouncing in for the past couple of days, but I also see the pair about to reach the top. What’s more, Stochastic is almost at the overbought area. A stop just above the range might be a good idea for the bears, while a break above the 88.50 handle might be a red cape for the bulls to go long.