Remember that GBP/USD rising channel setup I showed y’all last week? Well, the top of the channel around 1.5550 did hold as resistance and price just made its way back to the bottom. Support around the 1.5400 major psychological level seems to be holding, especially since a bullish divergence is already playing out. This suggests that GBP/USD might climb back to the top of the channel near the 1.5500-1.5550 area for another test of resistance. Just make sure you set your stops below the channel support if you’re thinking of going long!
Here’s a rising channel that’s just forming on AUD/USD’s 1-hour forex chart. The pair is making a test of support around the .7800 major psychological level at the moment and may be due for a bounce back to the top of the range just above the .7900 major psychological resistance. Stochastic is moving up from the oversold area, indicating a pickup in buying momentum, which just might be enough for the uptrend to resume. If you’re bearish on this pair though, you could wait for a strong downside break below the .7800 mark to hop in a short trade.
If you’d rather trade the yen pairs, then you might fancy this ascending channel setup on GBP/JPY’s 1-hour forex time frame. The pair is currently testing the area of interest around the middle of the channel, still deciding whether to head lower towards the channel support at 183.00 or to make another test of resistance at 185.00. Stochastic is on middle ground and seems to be on its way up, hinting that a bounce back to the top of the range is more likely. Don’t forget to set those stops right if you’re thinking of jumping on this uptrend!
Forex Chart Settings:
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.