Remember the GBP/USD channel that I pointed out early this week? Well, it looks like the pair tested its resistance! Cable bounced from the 1.5650 handle yesterday, and it looks like the pound bears are getting ready to flex their muscles with a bearish divergence and overbought Stochastic signal supporting a short trade. The 1.5400 area is a good target if you’re bearish on the pair, especially if you put your stop loss above the descending channel.
Here’s a nice Fib setup for the comdoll traders! On NZD/USD‘s 4-hour chart is a potential retracement setup with a rising trendline support lining up with the 50% Fib and a former consolidation level. The .7800 handle is a good bet for an entry, but you can also place it a bit higher if you want. Just make sure you have your stop losses in place!
Breakout traders huddle up! After rallying above the .9400 handle yesterday, USD/CHF is now consolidating on a bullish pennant on the one-hour chart. If you’ve read your School of Pipsology, then you’d know that this is a signal of a pause, and that we could see a continuation of a rally. Read up on how to trade breakouts if you’re planning on playing this setup!
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.