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USD/CHF: 1-hour

USD/CHF 1-hour Forex Chart
USD/CHF 1-hour Forex Chart

First up is a nice and simple trend play on USD/CHF. See, the pair is lollygagging along a descending channel on the 1-hour time frame. What makes the setup even more interesting is that the downtrend is supported by the 100 and 200 SMA resistance that haven’t been broken since the start of the year. Selling around the 1.0050 – 1.0100 is a good idea if you’re one of them dollar bulls. But if you think that the Greenback will soon break higher against the yen, then you could also plot your breakout trades above said resistance areas. Whatever bias you act on, just make sure you practice good risk management, aight?

GBP/USD: 1-hour

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

Breakout alert! GBP/USD has just bounced from a retest of the 1.2200 area after hitting a high of 1.2425 earlier this week. As you can see, the 1.2200 level lines up with a falling trend line that had been valid since early December. Are we seeing a break-and-retest situation over here? The 100 SMA crossing above the 200 SMA is strengthening the case for a pullback trade, so y’all might want to watch out for some more upward momentum. Stops below the trend line could get you a good reward-to-risk ratio especially if you think that Cable is just getting started with its uptrend. Of course, you could also wait for a break above this week’s highs if you’re still not sure about the pound’s uptrend.

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!