Alright support and resistance traders, it appears that we’ve got a nice setup on EUR/GBP. If you’re feeling bullish on EUR/GBP, then you may want to consider trading the short-term bounce up. The pair is currently finding strong support at .8550, and with the Stochastic showing oversold conditions, we may very well see the bulls take over again.
GBP/USD is all about ranges too as it has been trading within a wide 150-pip range. As you can see, it is finding resistance at 1.6050 after bouncing convincingly from the 1.5900 area. Since the Stochastic has hit overbought territory again, we may see resistance hold and price move back down again to 1.5900.
Who shorted USD/CHF at .8900? If you did, congratulations! It seems that the pair still has a lot of room to go down since the next major support level won’t be until .8900. The pair is also exhibiting a long-term downtrend after topping out at .9300. Just be careful of the Stochastic, as it is oversold and is hinting at a price pullback soon!
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.