Ah-ha! Will we see GBP/USD pull off an R. Kelly soon and bounce-bounce, bounce-bounce off support at the bottom of the channel? Maybe. But I wouldn’t get ahead of myself if I were you, not until signs of a reversal materialize around 1.4900. Who knows, the pair could break below support at the channel and drop all the way down to 1.4800.
If you’re looking to jump in on a Fibonacci retracement play, look no further than AUD/JPY. On the 4-hour chart, it looks like the pair isn’t able to sustain its rally above 98.00 and could soon pullback a bit. It could find support around its previous resistance level at 96.75 which coincides nicely with the 98.2% Fib level. Keep an eye out for reversal candlesticks around the area!
USD/CHF on the hourly timeframe is also sportin’ a pretty similar setup to that of AUD/JPY! Price just made a new high but it would seem that it couldn’t hold above .9550. It could soon retrace some of its gains back to the 50% Fib level and test the area which served as resistance before. But take note! The pair kinda looks like it’s also sportin’ a bullish flag too! A break above .9555 could signify a strong upward rally so make sure you keep an eye out for it too!
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.