The trend surfers out there may wanna keep an eye on that there ascending channel on GBP/JPY’s 1-hour chart. As y’all can see, the pair is presently making its way lower after testing the channel’s resistance area. Do note, however, that there’s a chance that buyers will jump in without letting the pair reach the channel’s support area, given that stochastic is already about to enter oversold territory. Also, the moving averages are now in uptrend mode. And it even looks like the 100 SMA has been acting as dynamic support in the recent past.
If you prefer trading the range, then check out that there rectangle pattern for GBP/CHF. The pair has recently been trading sideways while respecting resistance at 1.2200 and support at 1.2010, which gives us a 190-pip trading range to play with. And presently, the pair appears to be testing the rectangle’s support area. If support at 1.2010 holds, then the pair will likely be gunning for the rectangle’s resistance area at 1.2200. Stochastic is already indicating oversold conditions, which supports our short-term bullish bias. However, the moving averages are already in downtrend mode, so make sure to wait for support to actually form before going long.
If trading breakouts is more your style, then feast your eyes on that there symmetrical triangle for GBP/NZD. Well, that is actually an updated chart of yesterday’s setup, but I have decided to reassess my setup after the most recent price action. Anyhow, a symmetrical triangle could potentially break either to the topside or the downside. And the resulting breakout move may have enough steam for a 260-pip run. In any case, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
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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.