Gold: The price of this commodity appears to have pushed it into the over-bought region of the daily RSI, but has recently dropped a bit lower than the over-bought region's lower border. We are now seeing the price beginning to correct back downwards. A bearish cross is also forming imminently on the weekly Stochastic (slow), suggesting that now may be a great entry point for forex traders interested in capturing fast profits before the weekend. Bollinger Bands have long been one of the most popular technical indicators across financial markets, and many forex traders use them regularly in their day-to-day trading. The key question to ask of any forex analysis technique is nonetheless clear: how effective is the Bollinger Bands indicator as a forex strategy?

The GBP has dropped significantly versus the CHF in the past 3 weeks, and it is currently traded around 157.35. And now as evident in the data below, the 4-hour chart is giving bullish signals, indicating that GBP/CHF pair might go up. Forex traders can take advantage of this impending movement by having their Entry Orders in place to capture this reversal.

• Below is the 4-hour chart of the GBP/CHF currency pair.

• The technical indicators that are used are the William Percent Range and Slow Stochastic.

• Point 1: The Slow Stochastic indicates an impending bullish cross, signaling that the next move may be in an upward direction.

• Point 2: The Williams Percent Range has peaked near at the -100 marker, which means that there may actually be a strong level of upward pressure.

• The volatile downward movement which occurred prior to this upward correction has generated these indicators, and there appears to be room for this correction to continue.

GBP/CHF 4-Hour Chart

Gold: After a few weeks of sustained upward movement, the price of Gold now appears to be gearing up for a downward slide. The daily RSI has the price floating in the over-bought region for some time now, suggesting strong downward pressure. The weekly Stochastic (slow) has almost formed a bearish cross, and will likely do so by the beginning of next week. This provides forex traders a great chance to call the reversal point on a precious commodity like Gold and ride out the downward movement for a healthy profit. CAD/CHF: The sharp downturn in this pair has resulted, at last, in the technical indicators showing potential for a correction. The 4-hour, daily and weekly RSIs all float in the over-sold territory and just recently a bullish cross formed on the daily Stochastic (slow). All of this evidence points towards a beneficial opportunity for forex traders looking for a great opening price at the low point of a movement. Going long on this pair now seems to have the most potential for profits today.