Important GBP Pairs: Technical Outlook

Important GBP Pairs: Technical Outlook


Ever since the GBPUSD reversed from 50-day SMA and 38.2% Fibonacci Retracement of its June – October downturn, the pair continued trading down and is presently around support-line of a short-term ascending trend-channel, at 1.2330 now, with USD strength signaling brighter chances of its declines. Given the scheduled US details print positive figures, the pair may break the bullish formation and can quickly dip to 1.2250; however, its further south-run needs to clear 1.2160 and the 1.2080 before challenging the 1.2000 psychological magnet. In case of downbeat US readings fueling the pair towards north, 50-day SMA level of 1.2530, the 1.2600 and the 38.2% Fibo level of 1.2665 could offer nearby resistances to the quote. During its additional upside beyond 1.2665, mentioned channel’s upper-line, at 1.2750, and the 1.2845-60 confluence, comprising 100-day SMA & horizontal-area, become important north-side figures for pair traders to watch. If the prices manage to surpass 1.2860 on a daily closing basis, chances of the pair’s fresh rally towards 1.3000 becomes more likely.



Even if the five-month old ascending trend-line triggered EURGBP bounce during early week, 100-day SMA level of 0.8635, followed by 0.8700 round figure, could continue limiting the pair’s short-term advances. Should the pair breaks 0.8700, the 0.8770 and the 0.8855, comprising 23.6% Fibonacci Retracement of its May – October up-move, can come into play, which if broken enables the Bulls to expect 0.8900 and the 0.8950 resistance levels. On the downside, pair’s dip below mentioned TL support of 0.8490 can increase the downside momentum by fetching the pair to 50% Fibo level of 0.8410. Should the pair fails to respect 0.8410, the 0.8320 and the 200-day SMA level of 0.8255 becomes crucial to watch.



Following GBPJPY’s failure to surpass 138.80-90 horizontal-line, comprising September high, the pair seems coming down to test an immediate support-line of 136.50, breaking which its fresh south-run to 134.85 and then to the 133.40 can be expected. Given the prices keep declining below 133.40, the 132.50 and the 131.70 are likely downside figures to observe. Alternatively, 138.00 is likely immediate resistance for the pair before it could confront with 138.80-90 area. Should the quote manage to surpass 138.90, also clear 139.00 round figure, the 140.00 and the 141.20 could please buyers.



Unlike other GBP pairs which aren’t that close to supports, the GBPNZD is presently testing the short-term ascending triangle support of 1.7510 and a break of which can trigger its immediate downturn to 1.7455 and the 1.7380 support levels. In case of the pair’s additional declines below 1.7380, 38.2% Fibonacci Retracement of its September – November drop, at 1.7300, and the 1.7235 could entertain the Bears. Meanwhile, 1.7600, 1.7620 and the 61.8% Fibo level of 1.7665 may offer nearby intermediate halts during the pair’s reversal before it could aim for pattern resistance of 1.7730-40 area. Given the quote manage to surpass 1.7740, its extended advances to 1.7810 and the 1.7850 can’t be denied.

Cheers and Safe Trading,

Anil Panchal