Cable - fresh strength approaches near-term congestion top

EURUSD
The Euro pulls back from yesterday’s fresh high at 1.1374, with daily close above 1.13 support, maintaining bullish sentiment, as the pair cracked important 1.1350 barrier, 22 Oct 2015 high.
However, long upper shadow of yesterday’s daily candle suggests hesitation ahead of another significant resistance zone, which lies between 1.14 and 1.15, with the latter marking key barrier.
Structure of near-term technicals is weakening and suggests further easing.
Daily Slow Stochastic is attempting to reverse from oversold territory, which will generate initial bearish signal for stronger pullback.
Also, profit taking at the end of the week, should be considered as another negative factor, however, strong bullish stance of daily studies, keeps focus at the upside and sees dips as buying opportunities.
The notion is supported by pair’s attempts for the second consecutive bullish weekly close and long-tailed Wednesday’s daily candle.
Initial support at 1.1270, yesterday’s intraday lows that formed hourly higher base, was cracked, but holds for now.
Former top at 1.1243, also Fibo 23.6% of 1.0808/1.1374 upleg, will be exposed in case of deeper pullback, while extended dips need to hold above 1.1160 breakpoint, higher base and Fibonacci 38.2% of 1.0808/1.1374 upleg.

Res: 1.1332; 1.1373; 1.1400; 1.1458
Sup: 1.1263; 1.1240; 1.1200; 1.1160








GBPUSD

Cable is back to strength and approaches the upper boundary of near-term congestion at 1.4576.
Bounce from yesterday’s low at 1.4380, where higher base was formed, left long-tailed daily candle, which signals renewed buying interest.
Today’s fresh bullish acceleration is back above daily 10SMA, generating bullish signal.
Daily indicators are heading north, with bullish setup of 10, 20 & 30SMA’s, being supportive for further gains.
Sustained break above 1.4576, congestion top, would open next pivot at 1.4665, 04 Feb correction top, to expose 1.4742, Fibonacci 38.2% of larger 1.5816/1.4078 descend.
Psychological 1.4500 level marks initial support, reinforced by rising daily 10SMA, followed by 1.4456, session low and 1.4421 daily 30SMA.


Res: 1.4576; 1.4612; 1.4665; 1.4742
Sup: 1.4500; 1.4456; 1.4421; 1.4380







USDCAD

The pair holds above broken 10SMA for now, but initial bullish signals, generated on yesterday’s break above 10SMA, are fading, following upside rejection at 1.4014, on a false break above psychological 1.4000 barrier.
Long upper shadow of yesterday’s daily candle signaled fresh downside pressure, which may result in extended congestion.
Positive sentiment is expected to remain in play, while rising daily cloud top (1.3858), stays intact and continues to underpin.
Return above 1.40 barrier and attempts above pivotal 1.4038, Fibonacci 38.2%, 1.4688/1.3673 is needed to signal fresh strength and recovery resumption.
Otherwise, negative signal will be generated on sustained break below initial 1.3900 support, daily 10SMA, while violation of daily cloud top and close below it, will be seen as strong bearish signal.
The pair is on track for weekly close in long-legged Doji candle, which signals strong indecision, as the pair spent the whole week within the range.
Break out of 1.3785/1.4014 range, is needed to signal fresh direction.
Overall structure remains bearishly aligned and sees current move higher as correction, before larger bears from 1.4688 high resume.

Res: 1.3936; 1.4014; 1.4038; 1.4100
Sup: 1.3885; 1.3800; 1.3784; 1.3707







USDJPY

The pair trades in choppy, narrow range consolidation above fresh 15-month low at 110.97, posted on yesterday’s extension of steep 8-day fall.
Asian and early European trading is shaped in long-legged Doji, signaling indecision, with upside attempts being so far capped at 113.00.
Overall structure remains firmly bearish and favors limited upside attempts, ahead of fresh weakness, as daily RSI and Slow Stochastic remain oversold and holding in sideways mode.
Renewed attempts below 111 handle, will open next significant supports at 110.37, Fibonacci 38.2% of larger upleg from 100.81 to 125.84 and 110.00, psychological support.
On the upside, session high marks initial resistance at 113.00, followed by 113.50, Fibonacci 23.6% of 121.67/110.97 descend and only sustained break here would sideline immediate downside threats.


Res: 113.00; 113.50; 114.20; 115.06
Sup: 111.64; 110.97; 110.37; 110.00