Cable sure loves to bounce! GBP/USD has tested the rising trend line on the 1-hour time frame a bunch of times already, and it appears ready to bounce again. The pair is currently stalling at the 50% Fib support while stochastic has reached the oversold region, suggesting that pound bulls are about to charge. Should the pair dip a little lower, keep your eyes on the support trifecta at the 61.8% Fib level, 1.6000 major psychological mark, and rising trend line.
USD/CAD is struggling to get back on its feet after that nasty fall recently, but it appears that the bearish divergence at the 61.8% Fibonacci retracement level will keep those rallies in check. Price has drawn lower highs while stochastic made higher highs, although the oscillator hasn’t crossed down from the overbought region just yet. The pair could still edge a little higher but its climb might be limited to the support turned resistance zone just around the falling trend line.
Here’s another trend line and divergence combo that you wouldn’t want to miss! The pair has already bounced off the 38.2% Fibonacci level, which coincides with the .8400 major psychological support, while the bullish divergence is playin’ out. Until NZD/USD starts making new highs though, it could still have a shot at testing the rising trend line, which is right around the .8300 handle and 61.8% Fib level.
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.