GBP/USD - Moving sharply higher

Peter A Rosenstreich Swissquote Bank Ltd

EUR/USD

Moving higher.

EUR/USD has further improved as seen by the break of the resistances area given by 1.0679. Hourly support can be found at 1.0650 (18/04/2017 base) then 1.0570 (11.04.2017 low). Stronger support can be found at 1.0494 (22/02/2017 low). A key resistance stands at 1.0874.
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

Moving sharply higher.

GBP/USD is moving sharply higher from key support at 1.2334, suggesting a deeper shortterm base formation. Resistance stands at 1.2605 (18/04/2017 reaction high) then 1.2953. An hourly support can be found at 1.2581 (12/04/2017 base) then 1.2405 (11/04/2017 low).
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

Failed to challenge support at 108.22

USD/JPY has broken to the downside out of the horizontal support at 110.11 confirming a bearish bias. Next support can be located at 108.22 (17/04/2017 low). Other key supports lie at a distant 106.04 (11/11/2016 low). Hourly resistance stands at 109.10 (18/04/2017 high). Other resistance can be found at 110.11, while a key resistance stands at 112.20 (31/03/2017 high).
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

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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