Finally, GBP/USD encounters resistance! After spending the past couple of weeks marching up the charts, the pair has stalled at the 1.5600 handle. The question now is, will it continue to hold off buyers? It was a strong inflection point in the past, so it’s no stranger to stopping rallies. But then again, it looks as though a double bottom is forming on GBP/USD, so we can’t rule out a strong upside breakout.
Is this the end of the USD/JPY selloff? It could be! Price just bounced off the 96.00 major psychological handle, forming a solid hammer in the process. With Stochastic deep in oversold territory, it looks as though sellers have finally run out of steam. Keep your eyes on this pair, fellas, because it might just make another run towards its former highs above 103.00!
What do you get when you combine a falling channel with a bearish divergence? Prime conditions to sell! That’s right, folks! USD/CHF is currently testing the top of its falling channel, which means it may just be a matter of time before sellers take this bad boy down again. If you’re feeling this setup, you can aim for the former lows. However, if you think that the downtrend is due to end, it might be best to wait for price to break above the top of the channel before committing to a long position.
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.