Even after trying multiple times during the last one-week, the GBPUSD is still not succeeded in its attempts to conquer eleven-month old ascending trend-line, at 1.3480 now; though, the 200-day SMA level of 1.3555 acts as a strong near-term upside barrier for the pair. Hence, the pair has to provide a daily close clearing either the 1.3480 or the 1.3555 in order to register higher momentum. Considering comparative weakness of the GBP, the pair is more likely to break the 1.3480 mark, which in-turn could quickly drag the quote to 1.3400 and then to the 1.3350 while its further downside can be confined by the 1.3300 – 1.3290 horizontal-area. On the contrary, north-side run above 1.3555 can avail 1.3615 as an intermediate rest ahead of confronting the 1.3710-20 resistance-zone. Should Bulls dominate after 1.3720, the 1.3785-90 & 1.3850 could become their favorites.
GBPJPY’s bounce off the 147.00 – 147.05 support presently challenges the 50-day SMA level of 149.80, breaking which it can rise to 150.60-65 resistance-region, including 100-day SMA. In case if the pair manages to surpass the 150.65, the 151.30 and the 152.00 can entertain the buyers prior to questioning their strength by the downward slanting TL figure of 152.55. Meanwhile, the 148.60, the 148.25 and the 147.50 are likely adjacents rests that the pair may avail during its U-turn before testing the 147.05 – 147.00 area again. Assuming the pair’s dip beneath the 147.00, the 146.30 and the 145.85 might grab market attention.
With the three-week long descending TL restricting the GBPAUD’s immediate upside, the pair is re-testing the 1.7915-10 horizontal-support, breaking which it can drop to 1.7855 and the 1.7830 but the 1.7800 could limit its additional south-run. Given the pair’s break of 1.7800, the 1.7730, the 1.7700 and the 1.7670 can please the Bears. Alternatively, 1.8000 round-figure could act as nearby resistance for the pair, breaking which aforementioned trend-line, at 1.8040, seems important to observe. Should the pair’s recovery escalate beyond 1.8040, the 1.8100, the 1.8140 and the 1.8175 could mark their presence on the chart.
While the inability to break the 1.3470-60 support-zone is likely fueling the GBPCHF towards month-old descending TL resistance of 1.3590, the pair’s following upside seems doubtful. In case if the pair surpasses the 1.3590, also clears the 1.3600 round-figure, the 1.3650, the 1.3680 and the 1.3720 can come-back as quotes. Let’s say the pair dips below the 1.3460, it can test the 1.3400 and the 1.3355 whereas 100-day SMA level of 1.3325 may find its further declines. It should also be noted that daily closing break of 1.3325 might not hesitate to flash 1.3240 for the traders.
Cheers and Safe Trading,