Trend traders huddle up! GBP/USD is having trouble breaking above the 1.3250 minor psychological area, which is right smack at a falling channel resistance and 100 SMA on the 1-hour time frame. What’s more, stochastic is flashing an overbought signal. A short trade at current levels could get you decent pips especially if the pair drops back to its previous lows. Just make sure you practice good risk management!
Here’s one for the Fib warriors out there! EUR/GBP just bounced from a 50% Fib on the 4-hour chart, which also happens to line up with the .8500 major psychological handle. This time around a bearish divergence has also popped up on the chart. Think the euro is about to see more losses against the pound? Read up on using Fibs to enter trend setups if you haven’t done it yet!
Last one up for this batch of charts is a nice descending triangle play in the making. As you can see, USD/JPY’s gains is limited by a falling trend line and 100 SMA while its losses are confined to the 100.00 major psychological level. The pair is almost at the end of the pattern so watch out for a possible breakout some time in the next couple of days. Not all descending triangles break to the downside though, so a downside breakout is not a done deal yet. In any case, keep an eye on this one for possible trade opportunities!
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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.