GBPUSD: Bearish momentum starts to fade
|EUR/USD
Selling pressures increase around 1.0600.
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EUR/USD failure to test 1.0653 (30/12/2016 reaction high) resistance has led to a mild correction towards 1.0506 support. Next hourly support lies at 1.0341 (03/01/2017 low). Expected to see continued further monitoring of the resistance area around 1.0600.
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In the longer term, the death cross late October indicated a further bearish bias. The pair has broken key support given at 1.0458 (16/03/2015 low). Key resistance holds at 1.1714 (24/08/2015 high). Expected to head towards parity.
GBP/USD
Bearish momentum starts to fade.
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GBP/USD is heading downwards towards hourly support at 1.2083 (25/10/2016 low) while hourly resistance lies at 1.2268 (intraday high). The technical structure suggests further downside.
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The long-term technical pattern is even more negative since the Brexit vote has paved the way for further decline. Long-term support given at 1.0520 (01/03/85) represents a decent target. Long-term resistance is given at 1.5018 (24/06/2015) and would indicate a long-term reversal in the negative trend. Yet, it is very unlikely at the moment.
USD/JPY
Short-term downtrend channel.
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USD/JPY is still bouncing on former resistance given at 114.83 settling in current 2-month 116.12 to 118.66 range. Hourly support lies at 114.74 (12/12/2016 low). Expected to see further range trading.
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We favor a long-term bearish bias. Support is now given at 96.57 (10/08/2013 low). A gradual rise towards the major resistance at 135.15 (01/02/2002 high) seems absolutely unlikely. Expected to decline further support at 93.79 (13/06/2013 low).
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