SWISSQUOTE: Daily Technical Forex Report – GBP/USD: Trying to bounce…

In SWISSQUOTE’S Tuesday technical trading report, their research team outlines the major technical levels of popular currency instruments for the short term trader, below is the outline for the GBP/USD (very active in the last couple of months) and USD/CAD. You can download the full report by clicking here.

GBP/USD: Trying to bounce…

• GBP/USD showed signs of buying interest Monday after its relentless decline since mid-July. However, the hourly resistance at 1.6893 (01/08/2014 high) needs at least to be broken to suggest some exhaustion in short-term selling pressures. Another resistance can be found at 1.6928 (intraday high). An hourly support lies at 1.6814.

• In the longer term, the break of the major resistance at 1.7043 (05/08/2009 high) calls for further strength. Resistances can be found at 1.7332 (see the 50% retracement of the 2008 decline) and 1.7447 (11/09/2008 low). A key support stands at 1.6693 (29/05/2014 low).


USD/CAD: Fading near the key resistance at 1.0961?

• USD/CAD has exhibited significant upper shadows in the last three days, suggesting increasing selling pressures near the key resistance at 1.0961 (see also the 50% retracement). However, a break of the hourly support at 1.0877 (31/07/2014 low) is needed to confirm these warning signals. Another support stands at 1.0797 (29/07/2014 low), whereas another resistance lies at 1.1053.

• In the longer term, the technical structure looks like a rounding bottom whose minimum upside potential is at 1.1725. However, a break of the support area implied by the long-term rising trendline and 1.0559 (29/11/2013 low) would invalidate this long-term bullish configuration.


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