SWISSQUOTE Daily Technical Report: GBP/USD still bearish

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 EUR/USD. Download the full report by clicking here.

GBP/USD: Still bearish

GBP/USD remains weak, as can be seen by the recent new lows (1.6786 intraday) below the hourly support at 1.6814 (01/08/2014 low). A break of the resistance at 1.6893 (01/08/2014 high) is needed to suggest exhaustion in shortterm selling pressures. Another resistance can be found at 1.6955 (30/07/2014 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 key support stands at 1.6693 (29/05/2014 low, see also the 200 day moving average).



EUR/USD: Lower range holds

• EUR/USD is holding the low implied by Wednesday’s hammer. Coupled with the proximity of the key support at 1.3296, a shortterm rebound is likely. Resistances can be found at 1.3444 and 1.3503 (05/06/2014 low). An hourly support stands at 1.3333 (06/08/2014 low).

• In the longer term, EUR/USD is in a succession of lower highs and lower lows since May 2014. The downside risk is given by 1.3210 (second leg lower after the rebound from 1.3503 to 1.3700). A strong support stands at 1.3296 (07/11/2013 low). A key resistance lies at 1.3549 (21/07/2014 high).

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