GBP/USD: Consolidating after strong increase

Yann Quelenn Swissquote Bank Ltd

EUR/USD

Stalling below 1.1500.

EUR/USD bearish pressures are weak and the pair is way into a consolidation phase. Hourly resistance is given at 1.1489 (12/07/2017 high). Hourly support can be found at 1.1313 (05/07/2017 high). Stronger support lies at 1.1076 (18/05/2017 low). Expected to show sideways price action.
In the longer term, the momentum is clearly negative. We favour a continued bearish bias towards parity. Key resistance holds at 1.1714 (24/08/2015 high) while strong support lies at 1.0341 (03/01/2017 low).

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GBP/USD

Consolidating after strong increase.

GBP/USD has broken the 1.3000 mark. Strong resistance at 1.3048 (18/05/2017 high) has been broken. Expected to show continued bullish pressures.
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

Weakening.

USD/JPY is going lower. Hourly support given at 112.83 (13/07/2017 low) has been broken. Stronger support is located at a distance at 108.13 (17/04/2017 low). Expected to show continued bearish pressures.
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).

Author

Yann Quelenn

Swissquote Bank Ltd

Yann Quelenn is a Market Analyst at Swissquote Bank with strong technical and financial background. Previously, he worked as FX Trader at Banque Privée Edmond de Rothschild and as Portfolio Manager at Polaris Investment in Luxembourg.

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