GBP/USD: Renewed bullish momentum

Yann Quelenn Swissquote Bank Ltd

EUR/USD

Strengthening.

EUR/USD's momentum is still largely positive despite some consolidation. Hourly resistance is given at 1.0719 (17/01/2016 high). Hourly support lies at 1.0590 (19/01/2016 low) and 1.0341 (03/01/2017 low). Expected to see continued increase.
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

Renewed bullish momentum.

GBP/USD has reached 1.2400 before bouncing lower. The technical structure seems to show positive potential. Hourly resistance is given at 1.2416 (17/01/2016 high) while hourly support is given at 1.2254 (19/01/2016 low). Expected to show further consolidation.
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

Monitoring downtrend channel.

USD/JPY is monitoring resistance implied by the upper bound of the downtrend channel. The road remains nonetheless wide-open towards hourly support given at 112.58 (17/01/2017 low). Hourly resistance is given at 115.62 (19/01/2016 high), Expected to see further downside moves.
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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