Dukascopy Bank Team
Dukascopy Bank SA
GBP/USD 4H Chart: Channel Up
Comment: Despite a seemingly strong upward momentum we had been observing since the beginning of April, GBP/USD has broken out of the channel to the downside. However, it is still too early to say that the bulls have completely lost control of the pair. The volume was relatively low during the sell-off, and the long-term SMA is still below the spot price, meaning the reversal has not yet been confirmed. In order to invalidate the positive outlook the exchange rate will have to close below a cluster of supports around 1.51, where the weekly S3 merges with the monthly pivot point and May low. In this case the first target will be the monthly S1 at 1.4781, followed by the April low at 1.4567.
EUR/SGD 1H Chart: Channel Down
Comment: The bias towards EUR/SGD is bearish, being that the currency pair has recently proved to be unable to overcome resistance at 1.5150 (May high). While we may expect some rallies in the short run, they should be limited by the falling trend-line at 1.48. The immediate support is at 1.4680, represented by the May low. Once this level is breached, the Euro will likely aim for 1.46, where it is going to meet the lower boundary of the channel. However, if supply at 1.48 turns out to be insufficient to prevent appreciation of the single currency, the bears will have another chance to resume the sell-off near 1.49, where the recent highs coincide with the 200-hour SMA.
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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