Pound bulls, unite! This might be your chance to hop in the ongoing uptrend in GBP/USD, as the pair seems to be bouncing off the bottom of the rising channel on its 1-hour time frame. Stochastic is still moving higher and hasn’t reached the overbought zone yet, indicating that further rallies could be in the cards. Watch out for potential resistance around the previous highs or at the top of the channel though!
Here’s another potential bounce situation we’ve got going on, this time on EUR/USD’s 4-hour chart. The pair has drawn higher lows and found resistance around the 1.3800 major psychological mark, forming an ascending triangle chart pattern. The bottom of the triangle seems to be holding as support and EUR/USD is on its way back to the top, as stochastic is pointing up.
Last but not least is a setup for the swing traders out there! AUD/USD has been testing support at the .8900 major psychological level for the past few weeks, and it seems that bulls are in control of the game at the moment. Stochastic is still climbing towards the overbought zone, hinting at further gains. If that’s the case, AUD/USD might climb back to the next resistance level around the .9150 area.
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.