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USD/CHF: 1-hour

USD/CHF 1-Hour Forex Chart
USD/CHF 1-Hour Forex Chart

Breakout alert! USD/CHF just broke above the 1.0190 area, a level which had served as range resistance since late November. The pair is currently lollygagging at the 1.0250 MiPs though and, judging by the overbought stochastic signal, it looks like there might be room for a bit of retracement after the strong breakout. The broken resistance area is a good candidate especially since it also lines up with a 38.2% Fib retracement on the 1-hour chart. Buying at the Fib area is a good idea if you want a conservative long trade entry. Of course, you could also choose to enter at market and just build your positions if you don’t think that the pair will go back down to its previous resistance area.

GBP/USD: 1-hour

GBP/USD: 1-Hour Forex Chart
GBP/USD: 1-Hour Forex Chart

After dropping like a rock yesterday, GBP/USD is finding support at the 1.2500 major area of interest. What makes the level interesting is that it’s also just above a rising channel support on the 1-hour time frame. Oh, and check out that bullish divergence making itself known on the chart! Buying around current levels is a good idea if you think that the pair will return to its uptrend and retest its previous highs. If you’re not a fan of the pound though, then you can also wait for the pair to break below the 1.2500 MaPs and work on building short positions at the event of a downside breakout.

GBP/NZD: 1-hour

GBP/NZD 1-hour Forex Chart
GBP/NZD 1-hour Forex Chart

If trend plays aren’t your thing, then here’s a simple range setup for ya! GBP/NZD is having trouble breaking above the 1.7700 major psychological handle, which also marks the pair’s range resistance that hasn’t been broken since early December. GBP/NZD is also sporting a bearish divergence on the 1-hour time frame, so pound bears have one more reason to pounce. Targeting the 1.7500 range support is a good idea if you’re planning on trading this range. Take care to use wide stops though, as currency crosses like these tend to see more volatility than other major pairs!

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line

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.