GBP/USD: Continued weakness

Peter A Rosenstreich Swissquote Bank Ltd

EUR/USD

Pausing.

EUR/USD sideways trading continues at the 1.2340 range. The pair is currently maintained between hourly support and resistance given at 1.2165 (17/01/2018 low) and 1.2506 (25/01/2018 high). The technical structure suggests further short-term sideways trading moves.
In the longer term, the momentum is turning largely positive. We favor a continued bullish bias. Key resistance is holding at 1.2886 (15/10/2014 high) while strong support lies at 1.1554 (08/11/2017 low).

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GBP/USD

Continued weakness.

GBP/USD strong decline from 1.4377 high continues, trading at end March high and heading along the 1.4055 range. Hourly support and resistance are given at 1.3905 (23/02/2018 low) and 1.4377 (17/04/2018 high). The technical structure suggests further short-term decline.
The long-term technical pattern is reversing. The Brexit vote had paved the way for further decline but the pair is moving to 2016 highs. Long-term support and resistance are given at 1.1841 (07/10/2017 low) and 1.5018 (24/06/2016 high).

USD/JPY

Slight increase.

USD/JPY bounce from 106.90 low continues, approaching the 107.75 range. The bearish pattern started in January 2018 is somewhat weakening. The short-term technical structure suggests continued short-term upward moves.
We favor a long-term bearish bias. Support remains at 101.20 (09/11/2016 low). A gradual rise toward the major resistance at 125.86 (05/06/2015 high) seems unlikely. Expected to decline further support at 101.20 (09/11/2016 low). The pair trades below its 200 DMA.

Author

Peter A Rosenstreich

Swissquote Bank Ltd

Peter Rosenstreich is Swissquote Bank’s Head of Market Strategy and manages the global strategy desk; he has held various positions in several banking institutions in the United States, Europe & Asia.

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