Here’s a zoomed in version of the GBP/USD chart I showed y’all yesterday. As I mentioned, a pullback to the 1.7000 major psychological level might be in the cards now that price has found a bit of resistance at the 1.7200 area. A rising trend line can be drawn to connect the lows of the price, with this potential support area lining up with the 38.2% Fib, former resistance, and SMAs. A bounce from 1.7000 could take GBP/USD back up to its recent highs around 1.7200, but make sure you set your stop below the lowest Fib or trend line if you’re planning to go long.
Looks like another triangle pattern is forming on USD/JPY’s forex chart! The pair has made lower highs and found support at the 101.30 area, creating a descending triangle formation. The pair just came off a test of the triangle resistance and is headed for the support area once again. Stochastic is already in the oversold zone, indicating that a bounce might take place sooner or later. If that happens, price might climb up to the 101.75 area around the top of the triangle. Stay on your toes for any potential breakouts though!
USD/CHF recently broke above the falling trend line on its 1-hour forex time frame, hinting that the downtrend is about to turn. Before the reversal takes place though, price might need to gather more buying momentum by pulling back to the broken resistance area. Using the Fib tool on the latest swing low and high shows that the 61.8% retracement level lines up with the broken trend line and is close to the .8900 major psychological level. Stochastic is already moving out of the oversold area, with a bullish divergence starting to play out, suggesting that the pullback might be a shallow one.
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.