Check out the GBPUSD 1-hour chart I posted above! The pair just broke below the neckline of a double top formed starting the last day of 2009. Although this implies that the pair could continue on its downtrend, the stochastics suggest that the price action may pull back a bit. As the stochastics crawl out of the oversold area, the pair could retrace up to the 38.2% Fibonacci level, which is in line with the broken neckline. But if the upward momentum is strong enough to carry the pair above the neckline, the pair could move all the way up and retest the previous high of 1.6155 around the 61.8% Fibonacci retracement level.
Now, let’s move on to the AUDJPY 1-hour chart. A rising trend line was formed during the last week of 2009 but yesterday, the pair just breached this trend line. Does this mean that the pair’s uptrend is over? Well, the pair might need to break below the minor support around 83.30 to 83.40 before it proceeds to slide down. However, the stochastics seem ready to climb out of the oversold territory, hinting that some upward price action could be due. The pair could rise and retest the broken trend line before dropping down. There’s also the chance that the pair could surge all the way back above the trend line and resume its uptrend.
Next is the NZDUSD pair on its 4-hour chart. As you can see, the pair recently moved past the resistance at the psychological 0.7300 mark. Presently, it is riding a short term uptrend. It’s possible for it to reach 0.7500 if the uptrend line that I drew holds. 0.7300 would act as a good support to keep it afloat if some selling pressure appears. But if this level breaks, the pair could find itself at least down at 0.7200.