GBP/USD could see further weakness [Video]

EUR/JPY aims for higher highs, June’s resistance in focus

EURJPY stepped on the short-term ascending trendline, as it halted last week’s pullback from the new eight-year high of 145.62.

With the price trading comfortably above its upward-sloping simple moving averages (SMAs) and the momentum indicators hovering within the bullish territory despite their flat trajectory, upside moves are more likely than downside ones. Specifically, the RSI is a long distance above its 50 neutral mark, while the MACD is well elevated within the positive zone and near its red signal line.

A durable move above June’s tough ceiling of 144.26 could be the key for an acceleration towards the important long-term resistance line that joins all the highs from August 2020, currently seen around 146.45. A break above the 147.15 barrier could then pave the way towards the 2014 top of 149.76 and the 150 psychological mark, where the ascending line drawn from March lows is positioned.

In the bearish scenario, a cross below the support trendline at 143.40 could confirm an extension towards the 142.29 handle, while lower, the price could meet the 20-day SMA around 141.30. Failure to bounce from there may enhance selling interest towards the 139.50 – 139.10 region.

All in all, EURJPY may push for higher highs in the short term, with traders waiting for a clear confirmation signal above 144.26 to boost buying exposures.

GBP/USD could see further weakness, still strongly negative

GBPUSD is holding above the multi-year low of 1.1350, remaining within the long-term descending channel. The technical oscillators are suggesting some positive movement in the short-term, with the MACD surpassing its trigger line in the negative region, while the RSI is standing above its 30 level. Moreover, the pair is still hovering well below the 20- and 50-day simple moving averages (SMAs).  

On the upside, the price could attempt to overcome the 20-day SMA at 1.1570 and retest the previous high at 1.1750, which if successfully broken, could open the door for the 50-day SMA at 1.1845. Should traders continue to buy the pair above that line, resistance could then run towards the 1.1890-1.2000 area, meeting the upper boundary of the channel.

A reversal to the downside, however, could find immediate support at the 1.1350-1.1410 zone, while even lower the market could test the next psychological marks such as 1.1300 and 1.1200. Below that, the lower boundary of the downward pattern may halt bearish actions near 1.1100.

Turning to the long-term picture, the outlook has been bearish over the past seven months and only a decisive close above the 1.2000 handle and, more importantly, above the 200-day SMA at 1.2670, could shift the outlook to bullish.