GBP/USD: 1-hour
Anyone interested in a trend play on GBP/USD? I know I am! With the dollar weakening over the past couple of weeks, the pair has been able to form a pretty sweet uptrend. Right now, it seems like the only thing standing in the way of it retesting its former high is the 1.5900 handle. If pound bulls can manage to cross this line, they may just coast back up to 1.6000. But if they’re unable to rise above this major psychological handle, you might be better off looking for signs of a breakout!
USD/CAD: 4-hour
Just in case that trend play on GBP/USD didn’t tickle your fancy, maybe this range play on USD/CAD will! Forget parity because the 1.0030 resistance zone is where the action’s at! If you think that USD/CAD will remain range-bound, look to establish short positions around this major area of interest. Let our cheat sheets on Japanese candlesticks and divergence help guide you with your entry so you don’t get burned by a breakout!
EUR/GBP: Daily
Finally, we have one of Cyclopip‘s favorite cross-currency pairs to cap off today’s Chart Art. After yesterday’s big rally, EUR/GBP is now within 20 pips of the .8400 major resistance level. Look for sellers to step in if price draws closer. But be careful! Formidable as it may be, this resistance zone isn’t unbreakable. As you can see, it has been broken in the past!
Before you get carried away with all these chart patterns, remember that technical analysis is only half the story.
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.
