Now that Cable broke below that rising trend line I showed y’all in yesterday’s canvas, it’s about time we figure out how low this pair could go! Stochastic is still pointing down, indicating that pound bears are in control at the moment. If you’re thinking of shorting, keep your eyes locked on the area of interest near the 1.6200 major psychological handle, as this could act as the next support level for GBP/USD.
If you’re a fan of Fibonacci, then you shouldn’t miss out on this potential retracement opportunity. USD/JPY just broke below support around the 102.00 mark and dipped below the 101.00 handle. Before it heads any lower though, it seems that a quick pullback is in order sellers take a breather. If that’s the case, USD/JPY could retrace to the former support area, which lines up with the 61.8% Fibonacci retracement level.
Here’s another possible break-and-retest situation that looks ready to play out sooner or later! EUR/USD just breached the 1.3550 minor psychological level but looks poised for a quick retest of the broken support level before resuming its drop. Stochastic is moving out of the oversold area, which means that euro bears are exhausted, but watch out for another selloff once the oscillator reaches the overbought zone!
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.