Swissquote Daily Technical Report: GBP/USD – The short-term bounce is fading

In Swissquote’s Tuesday 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 AUD/USD. To view and download the entire report, click here (PDF).

GBP/USD: The short-term bounce is fading

• GBP/USD is losing its short-term bullish momentum. A break of the hourly support at 1.6186 (11/09/2014 low) would open the way for a test of the recent low at 1.6052. Hourly resistances can now be found at 1.6279 (15/09/2014 high) and 1.6340 (05/09/2014 high).

• In the longer term, prices have collapsed after having reached 4-year highs. The breach of the key support at 1.6220 confirms persistent selling pressures and opens the way for further decline towards the strong support at 1.5855 (12/11/2013 low). A key resistance now stands at 1.6644.


AUD/USD: Pickup in buying interest?

• AUD/USD closed higher yesterday, putting an end to the succession of large negative daily candles. However, a break of the hourly resistance at 0.9080 (intraday high) is needed to suggest exhaustion in short-term selling pressures. Another resistance stands at 0.9218 (10/09/2014 high). A support lies at 0.8891.

• In the medium-term, the break to the downside out of the 5 month horizontal range between 0.9206 and 0.9505 (bearish head and shoulders formation) calls for a further decline towards the support at 0.8891 (03/03/2014 low).


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