Is this a reversal pattern I’m seeing on GBP/USD’s 1-hour forex chart? It looks like an inverse head and shoulders pattern is forming, which means that the pair might be ready to start an uptrend soon. It has yet to break past the neckline around the 1.6150 minor psychological resistance before confirming the reversal. If that happens, the rally might last by as much as 300 pips, which is the same height as the chart pattern. Take note that stochastic is already indicating overbought conditions so buyers might have a tough time pushing the pair any higher.
Now here’s a simple break-and-retest setup forming on USD/CHF’s 1-hour forex time frame. The pair seems to be retreating from its recent climb, as buyers might want to catch a quick break before heading further north. Using the handy-dandy Fib tool on the latest swing low and high shows that the 50% Fibonacci retracement level lines up with a former resistance level which might act as support from now on. Stochastic is still pointing down, which means that sellers could be in control of price action at the moment and that a test of support around .9475 is possible.
Here’s one for the swing traders out there! If you’re wondering why AUD/USD has been moving sideways for almost an entire month, it’s because the pair is testing the bottom of a long-term falling channel. A break below this area could be a sign that more losses are in the cards while a bounce could signal that AUD/USD is ready to recover. An upside break from the current consolidation could take the pair back to the top of the channel, which is near the .9400 major psychological resistance or at least until the middle of the range at the .9000 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.