Swissquote Daily Technical Report: GBP/USD – Challenging its declining trendline

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 EUR/USD and GBP/USD. To view and download the entire report, click here (PDF).

EUR/USD: Approaching the key support at 1.3105

• EUR/USD continues to move lower and is now close to its key support at 1.3105 (06/09/2013
low). Hourly resistances for a short-term bounce can be found at 1.3221 (28/08/2014 high) and 1.3297 (22/08/2014 high).

• In the longer term, EUR/USD is in a succession of lower highs and lower lows since May 2014. A
long-term decline towards the strong support area between 1.2755 (09/07/2013 low) and 1.2662 (13/11/2012 low) is favoured. However, in the shorter term, monitor the key support at 1.3105 (06/09/2013 low) given the general oversold conditions. A key resistance lies at 1.3444 (28/07/2014 high).


GBP/USD: Challenging its declining trendline

• GBP/USD is bouncing after its bullish intraday reversal made on 25 August. A decisive break of
the hourly resistance area given by 1.6601 and the declining trendline (around 1.6625) is needed to suggest weakening selling pressures. Other hourly resistances can be found at 1.6679 and 1.6739. Hourly supports stand at 1.6537 and 1.6501 (25/08/2014 low).

• In the longer term, the break of the key support at 1.6693 (29/05/2014 low, see also the 200 day moving average) invalidates the positive outlook caused by the previous 4-year highs. However, the lack of medium-term bearish reversal pattern and the short-term oversold conditions do not call for an outright bearish view. A key support stands at 1.6460 (24/03/2014 low).


Swissquote: Long 2 units at 1.6611, Obj: Close 1 unit at 1.6883, remaining at 1.7165, Stop: 1.6527 (Entered: 2014-08-28)

Swissquote, a member of LeapRate’s Globally Regulated Broker List has the most advanced technology and sufficient liquidity, and its completely transparent foreign exchange trading pattern is unique, which helps ensure its customers trade with the best prices current at the time of the transaction. Swissquote’s financial and economic expert team provides its customers with high-quality technical analysis and research reports every day.

Read Also: