Swissquote Daily Technical Report: GBP/USD – Bouncing near the 200 day moving average

In Swissquote’s Monday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for GBP/USD and USD/CAD. To view and download the entire report, click here.

GBP/USD: Bouncing near the 200 day moving average

• GBP/USD is trying to bounce near the key support at 1.6693 (see also the 38.2% retracement and the 200 day moving average). Hourly resistances stand at 1.6844 (13/08/2014 high) and 1.6893 (01/08/2014 high).

• 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 decisive break of the key support at 1.6693 (29/05/2014 low, see also the 200 day moving average) is needed to invalidate this bullish outlook.


USD/JPY: Further sideways moves likely

• USD/JPY continues to bounce after the sharp bullish intraday reversal (hammer) made on 8 August. However, the key resistance at 103.02/103.09 (30/07/2014 high) will be hard to break. An hourly resistance lies at 102.72 (15/08/2014 high). Hourly supports can be found at 102.02 (11/08/2014 low) and 101.51.

• A long-term bullish bias is favoured as long as the key support 99.57 (19/11/2013 low) holds.
However, a break to the upside out of the current consolidation phase between 100.76 (04/02/2014 low) and 103.02 is needed to resume the underlying bullish trend. Another resistance can be found at 104.13 (04/04/2014 high), while a major resistance stands at 110.66 (15/08/2008 high).


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