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).
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.