GBP/USD: Recovery phase

Peter A Rosenstreich Swissquote Bank Ltd

EUR/USD

Bouncing off.

EUR/USD is recovering following its recent decline at 1.2295, heading higher along the 1.2340. Hourly support and resistance are given at 1.2112 (12/01/2018 low) and 1.2537 (31/01/2018 high). The technical structure suggests further short-term increase.
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

Recovery phase.

GBP/USD momentum starts back, approaching 1.40. The pair is currently contained between hourly support and resistance at 1.3765 (09/02/2018 low) and 1.4151 (05/02/2018 high). The technical structure suggests short-term increase.
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

Bouncing off.

USD/JPY is rising back following recent decline at 105.65, heading higher along the 106 range. Hourly support and resistance are given at 105.29 (02/03/2018 low) and 107.90 (14/02/2018 high). The bearish pattern started in January 2018 is maintained. The short-term technical structure suggests short-term rising 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 largely 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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