Swissquote Daily Technical Report: GBP/USD – Selling pressures remain strong


In Swissquote’s Thursday 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/JPY. To view and download (PDF) the entire report, click here.

GBP/USD Selling pressures remain strong

• GBP/USD made an intraday bearish reversal yesterday, confirming persistent selling pressures. The short-term technical structure is negative as long as prices remain below the resistance at 1.6739 (see also the declining trendline). An initial resistance lies at 1.6679. A support can be found at 1.6556.

• 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 now stands at 1.6460 (24/03/2014 low).

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USD/JPY Approaching the key resistance at 104.13

• USD/JPY continues to rise and is now close to the key resistance at 104.13. Hourly supports can be found at 103.20 (intraday low) and 102.91 (intraday low).

• A long-term bullish bias is favoured as long as the key support 100.76 (04/02/2014 low) holds. The break to the upside out of the consolidation phase between 100.76 (04/02/2014 low) and 103.02 favours a resumption of the underlying bullish trend. Strong resistances can be found at 105.44 (02/01/2014 high) and 110.66 (15/08/2008 high).

• We have removed our long strategy.

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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’sfinancial and economic expert team provides its customers with high-quality technical analysis and research reports every day.

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Swissquote Daily Technical Report: GBP/USD - Selling pressures remain strong

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