If you want to catch the bullish pound train, then you better pay attention to this one! GBP/USD is tradingon a steep rising trend line on the 1-hour chart, and it looks like it’s about to test the 1.5350 area. Not only is this a former resistance, but the level is also near the rising trend line support. What do you think? Are you up for this?
Pound trading not your thing? No problem! Take a look at EUR/JPY on the 1-hour chart, which is trading on a falling channel. Right now the pair is having trouble breaking below its former lows, which happens to be right at the falling channel support. And is that a bullish divergence I see? A stop below the 129.00 area could still give you a good risk ratio if you think that the pair is headed to the channel’s ceiling.
Rounding up our European currencies special is EUR/GBP‘s setup on the 4-hour chart. The pair is testing the .8500 zone, a level that has served as a pretty solid support and resistance in the past. Will it work again this time? Keep a close eye on this, brothas!
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.