Price action has finally validated an ascending channel on GBP/USD’s 1-hour forex chart. And as y’all can see, the moving averages have also recently crossed-over into uptrend mode, confirming our upside directional bias. In addition, price has also broken past the price area of significant market interest around the 1.5250 minor psychological level. Even better, price is currently testing the resistance-turned-support area at 1.5250, which also happens to be pretty close to the bottom of the channel, so we may be seeing an opportunity to go long soon. Stochastic is now pointing down, though, so be careful since that could mean that forex traders who are bearish on the pair aren’t quite out of steam just yet.
EUR/GBP has been moving sideways while trapped inside a rather tight 30-pip trading range or rectangle, with resistance and support at the 0.7020 and 0.6990 handles respectively. Presently, price is just about to test the rectangle’s resistance area, so a shorting opportunity may appear soon. Looking at our technical indicators, we can see that the moving averages are presently indicating a healthy downtrend, and the 100 SMA is acting as dynamic resistance to boot. Stochastic, meanwhile, has just reached overbought territory, so sellers may be enticed to start nibbling soon.
GBP/CAD has been grinding higher while bouncing around an ascending channel. And as I always say, a conservative way to play an ascending channel is to look for buying opportunities whenever price approaches the bottom of the channel, which is where price is currently at. Even better, the moving averages are already indicating an uptrend, with the 100 SMA acting as dynamic resistance, and stochastic is even indicating oversold conditions already. Also note that the ascending triangle on GBP/CAD’s 4-hour forex time frame that we identified back on Tuesday is still in play, so keep an eye on that setup as well. As usual, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?
Forex Chart Settings:
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