Check out this potential break-and-retest play, forex fellas! EUR/GBP has recently breached support at the .7900 major psychological level and dipped close to the .7800 handle before pulling up. The pair could retrace to the 38.2% Fibonacci retracement level on its 4-hour time frame, as this lines up with the broken support zone. Stochastic is still moving higher for now, indicating that buyers are in control of price action. If you’re thinking of shorting this pair, make sure you wait for stochastic to turn from the overbought area or for reversal candlesticks to form at the area of interest.
Looks like Happy Pip is on to something with her GBP/NZD trade idea! The pair just made a strong rally last week then pulled back to the 2.0000 major psychological support level recently. This lines up with the rising trend line forming on the 1-hour forex chart and the 61.8% Fibonacci retracement level. Stochastic is starting to crawl out of the oversold area, suggesting that buyers could push the pair back up to its previous highs near the 2.0300 major psychological level. Gotta set those stops right if you’re planning on going long!
Divergence alert! GBP/JPY has been on such a strong climb, and it looks like the pair could keeping heading higher. Stochastic has formed lower lows while price made higher lows, creating a bullish divergence on its 1-hour forex time frame. At the same time, price appears to be finding support at the 38.2% Fibonacci retracement level, which is near the 178.00 major psychological support level. If the pair pulls back any further, it could still draw support at the rising trend line, which coincides with the rising trend line and the 176.00 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.