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GBP/USD: 1-hour

GBP/USD 1-hour Forex Chart
GBP/USD 1-hour Forex Chart

As you can see on the chart above, Cable got rejected at the 1.2100 major psychological handle, and is now trading around the 1.2200 zone. The level lines up with a 38.2% Fib retracement as well as a previous support, so you can bet your neighbor’s cat that a few pound bears are waiting to pounce. If you’re one of them conservative traders though, then you could also wait for the pair to hit the 1.2300 mark, which is closer to the 100 SMA, 61.8% Fib, and falling trend line resistance on the 1-hour time frame. Stops above the trend line could get you a pretty sweet deal especially if you believe that the pound will make new lows against the Greenback in the next couple of days.

NZD/USD: 1-hour

NZD/USD 1-hour Forex Chart
NZD/USD 1-hour Forex Chart

If you’re not feelin’ any love for the Greenback, then this setup should set you up for the day! NZD/USD just broke above the 1.7050 mark, which has served as resistance to an ascending triangle earlier this month. Are we looking at a potential resistance-turned-support situation over here? Breakout traders can start scaling in at current prices while more conservative traders can wait for a pullback around the broken resistance area. For profit targets, consider the .7100 area, which is an area of interest on the shorter time frames, or the .7200 mark, which is right smack at the pair’s previous highs.

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. These are some of our favorite books if you want to get in deeper with price action analysis & charting tools. BabyPips.com receives a small credit from any purchases through the Amazon links above to help support the free content and features of our site…enjoy!