GBPUSD - n/t focus is turning lower after recovery attempts were capped by hourly cloud base

EURUSD

Yesterday’s strong recovery rally that left long daily bullish candle and marked the strongest daily gains after 03 Dec rally, was capped at 1.0938. Bear-trendline, connecting 1.1058 and 1.0990 tops, offers good resistance, which also limited today’s renewed attempts higher.
Near-term price action pulled back to 1.0852, where Fibonacci 38.2% of 1.0713/1.0938 upleg and daily 30SMA, offered temporary footstep. Narrow consolidation above 1.0852 is under way, with support seen as ideal reversal point for fresh attempts higher.
Both, near-term and daily studies show mixed setup, as price action is entrenched within 1.0938/1.0852 range.
Return above daily 20SMA, which was broken yesterday, will generate bullish signal for renewed attack at 1.0938 barrier and possible extension towards pivotal lower platform at 1.0990 and daily Ichimoku cloud top at 1.1025, in extension.
Conversely, slide below 1.0852 handle, would signal extended pullback, which should be held above 1.08, hourly Ichimoku cloud top, to keep near-term bulls in play.
Otherwise, bears are expected to take control on loss of 1.0800, also Fibonacci 61.8% of 1.0713/1.0938 and 1.0770, yesterday’s low and hourly trough.

Res: 1.0898; 1.0938; 1.0990; 1.1025
Sup: 1.0852; 1.0825; 1.0800; 1.0770






GBPUSD

Cable trades in near-term consolidative phase above yesterday’s spike low at 1.4531. Fresh weakness eventually cracked key support at 1.4564 (2015 low) and fully retraced 1.4564/1.5928, Apr/June 2015 correction, however, no close below 1.4564 breakpoint was seen so far, as yesterday’s close occurred higher. This suggests further consolidation, before overall bears resume.
Yesterday’s daily candle with long tail, also indicate hesitation, before the pair clearly breaks lower.
Upside attempts were so far limited by hourly Ichimoku cloud base, which offers solid resistance and should ideally cap corrective attempts.
Caution on oversold daily studies, which may trigger stronger bounce, once reversal signal will be generated.
Recovery high at 1.4643 is reinforced by hourly Ichimoku cloud top and marks next pivot, ahead of falling daily 10SMA at 1.4735, which marks breakpoint for stronger correction.

Res: 1.4601; 1.4628; 1.4643; 1.4695
Sup: 1.4579; 1.4531; 1.4500; 1.4450









USDJPY

The pair remains under strong pressure, as yesterday’s extended weakness spiked to 117.31, the lowest levels since Aug 2015.
Key supports at 116.13 and 115.56, lows of Aug 2015 and Dec 2014, which also mark the floor of multi-month congestion and breakpoint, are under increased pressure.
Bounce from fresh low was triggered by oversold daily studies and so far establishes above 118 handle, former base, now acting as support again. Further recovery could be expected, as hourly studies are gaining bullish tone.
The pair currently holds in hourly Ichimoku cloud and break above cloud’s top, currently at 118.44, needed to generate fresh bullish signal.
However, falling daily 10SMA at 119.45 marks the breakpoint and sustained break here will signal reversal.

Res: 118.44; 118.75; 119.45; 119.70
Sup: 118.15; 117.90; 117.44; 117.31







AUDUSD

Aussie entered narrow consolidation above fresh low at 0.6978, posted yesterday, on a brief probe below psychological 0.7000 support. Yesterday’s action closed below former pivotal support and low of 10 Nov 2015 at 0.7014, signaling further weakness, as the pair looks for return to key med-term support at 0.6906, low of 04 Sep 2015, to fully retrace 0.6906/0.7383 corrective phase. The notion is supported by break below 0.7014, which marked the floor of 0.7014/0.7383 congestion.
Technicals maintain firm bearish tone, however, oversold daily slow Stochastic indicates hesitation ahead of retest of key 0.6906 support.
Today’s daily candle so far shows long upper shadow, which confirms strong selling interest and suggests limited upside attempts for now.
Good resistance zone lies at 0.7095/0.7111, former low of 17 Dec / Fibonacci 38.2% of 0.7325/0.6978 downleg and extended rallies should be capped here.


Res: 0.7073; 0.7095; 0.7111; 0.7152
Sup: 0.7000; 0.6978; 0.6936; 0.6906