Confluence, baby! On GBP/USD’s 4-hour time frame, I’m seeing a falling trend line, a support-turned-resistance level, and a potential retracement play. The 38.2% Fibonacci retracement level seems to be holding for now while stochastic is moving downwards. However, it looks like pound bulls just won’t give up that easily. If any of the Fibs give way, we could be seeing a breakout from the downtrend right here!
NZD/USD has been crawling inside a falling channel for quite some time now as it seems ready to test the bottom once more. Stochastic is currently on its way down, suggesting that Kiwi bears might have the upper hand for now. If the bears push the pair further south, watch out for a potential bounce from the .8100 handle, which is close to the bottom of the channel.
Is that a rising wedge I’m seeing? Let me take off my groovy Ray-Bans to take a better look. Well, it looks like the chart pattern hasn’t completely formed yet on GBP/JPY but it’s definitely worth keeping an eye on! The pair is currently testing the top of the formation while stochastic is slowly making its way out of the overbought zone. Be careful if you plan to trade the bounce off the bottom of the wedge in case a breakdown is in the cards!
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.