Dukascopy Bank Team
Dukascopy Bank SA
GBP/JPY 4H Chart: Descending triangle
Comment: After a sharp sell-off to break the annual downtrend upon the Brexit vote, GBP/JPY consolidated inside of a descending triangle. The pair is currently targeting the 129.39 support level, one that has not been relevant since November 2012 and that would induce a slip at least to 127.97, but—cbased on the significance of the established demand zone – a dive as low as 126.72 can be expected. It remains however unclear whether the pattern has reached its maturity and will be broken during the current downward motion, leaving room for prospects of a ranging market over the next few weeks. In case the pattern does hold, a bounce from the aforementioned support will result in an ultimate target around 136.22 with hitches at 130.40, 131.21, 131.78 and 133.74 respectively.
CAD/CHF 1H Chart: Symmetrical Triangle
Comment: A symmetrical triangle contained the ranging CAD/CHF market with somewhat uncertain future movements caused by low volatility and pressures from both sides. The 55-hour and 200-hour SMAs have developed a golden cross formation, giving out strong bullish signals which would push the pair towards 0.7437 and further to 0.7444, the upper trend-line of the triangle. Inability to get through the 100-hour SMA, however, makes us remain in favour of a bear market, implied by the triangle pattern which should direct future movements after the breakout south. On its way towards the bottom trend-line of the triangle at 0.7407, the rate will struggle around the 0.7416/17 mark and could bounce from 0.7409 not reaching its ultimate target.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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