Heads up for a possible resistance retest! GBP/USD just bounced from its mid-range support on the 4-hour chart and it looks like it’s headed for its previous highs near the 1.5700 psychological zone. A tight stop just above the level could get you a sweet risk ratio if you think that the pound is going down. If you don’t, then you better get your breakout plays ready!
Is it me or is USD/CAD slowly completing an ascending triangle? Unfortunately, we won’t know if it is until we see a convincing break above 1.0600. In the meantime, we can keep an eye out for a possible retest of the rising trend line around the 1.0350 area. If you don’t know how to trade triangles yet, then y’all better read up on how to trade potential breakouts!
The last but definitely not the least setup today is a sweet support play on EUR/GBP‘s .8400 psychological level. If the hammer on the daily chart is not enough to get you movin’, then you should also see the oversold stochastic signal and the bullish divergence that’s starting to play out! A stop below the major handle is a good idea if you think that this pair is headed for its previous resistance.
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.