Daily Price Action

Price Action Setups: GBPUSD, GBPJPY and USDCHF


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Nobody can deny that the Forex market is in full swing this month. Today we saw the dollar continue its march upward on the back of the FOMC statement, and tomorrow promises to be another eventful day with the Scottish referendum vote as well as several other news events that will impact GBP, CHF and the USD.

Which brings me to a very important preface to today’s setups – use extreme caution if you decide to take any of the following setups. In fact it may be prudent to sit idle for the rest of the week given the potential for volatility over the next 24 to 48 hours. Of course the final decision is yours.

Let’s start with the pair everyone is talking about – GBPUSD. I mentioned yesterday that we should look for bearish price action at 1.627. Sure enough, today gave us a bearish pin bar on the daily chart.

All things considered, I do think this pair stands a good chance of seeing lower levels in the coming days. However it’s hard to say whether or not the tail of today’s pin bar will hold up given the possibility for extreme volatility over the next 24 hours.

Summary: Potential to trade today’s bearish pin bar that formed at key resistance. The next key support level appears to come in at 1.590.  If you decide to trade this you may want to use a 50% entry and give yourself a bit more room on the stop loss to help protect against the potential for volatility.

gbpusd daily forex chart

Next up is GBPJPY. Today the pair saw levels it hasn’t seen since October of 2008 and could be setting the stage for an even greater move in the coming days and weeks.

Note that GBPUSD and GBPJPY are not correlated. So although tomorrow’s events will certainly impact this pair, it shouldn’t carry the same weight, regardless of the outcome of tomorrow’s events.

Summary: Watch for bullish price action at 175.30. The next key resistance comes in at the 179 area.

gbpjpy daily forex chart

USDCHF analysis

usdchf 4 hour forex chart


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