Heads up, pound bulls! Cable is currently testing the ascending channel support visible on its 1-hour forex time frame. This neatly coincides with an area of interest and the 100 SMA dynamic inflection point, adding to its strength as a floor. At the same time, stochastic is making its way out of the oversold region to indicate that buyers are taking control of the game. In that case, price could head back up to the channel resistance around 1.3300-1.3325, but a break lower could be a sign that sellers are refusing to back down.
Here’s another pound setup might be ready to play out, but this one’s for the bears out there! GBP/AUD is trending lower on its 4-hour chart, moving inside a descending channel and testing the resistance. Stochastic is heading south, confirming that sellers have the upper hand, while the 100 SMA is below the 200 SMA. In addition, the longer-term moving average is close to the channel resistance and might hold as a ceiling. Better watch out for a candle closing past 1.7400 because this might indicate an upside breakout!
Last but not least is this potential Fib play on GBP/CAD, which might also be ready to resume its selloff soon. The pair is still making its way to the top of its descending channel on the 4-hour time frame, but it seems as though the 50% retracement level and 200 SMA are already keeping gains in check. Stochastic is on the move down and the 100 SMA is below the 200 SMA, indicating that sellers have the upper hand for now. A break past the 61.8% Fib and channel resistance around 1.7250, however, could suggest that buyers are getting stronger.
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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.