Are pound bulls ready to charge once more? GBP/USD is stalling around its yearly highs near the 1.7000 major psychological level with stochastic moving down from the overbought zone and reflecting a buildup in selling pressure. The current price consolidation looks like a bullish flag though, which is considered a considered a continuation pattern. An upside break could mean that more longer-term rallies are in the cards for this pair so y’all better review our lesson on Trading Breakouts if you plan to trade this one!
If you’d rather wait for retracements, then this setup on GBP/CHF might interest you. The pair has been on a very strong uptrend, as price has been moving above a rising trend line on the 4-hour time frame and the simple moving averages. After that recent run though, it looks like bulls could use a pullback, possibly until the trend line support. Using the handy-dandy Fib tool on the latest swing low and high shows that the 61.8% level lines up with the 1.5100 major psychological level and the 100 SMA, which makes it a potential support area.
Missed the break-and-retest on GBP/JPY? Don’t fret! You might still have a chance to join the pair’s climb, as it is currently forming a bullish flag pattern on its 1-hour forex chart. Stochastic is also pointing higher, indicating that buying pressure is still present and might be enough to push the pair beyond the 173.00 major psychological resistance. A downside break, on the other hand, could mean a pullback to the previous highs near the 172.00 handle.
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.