GBP/USD: Strong resistance at 1.3975/85

Jason Sen DayTradeIdeas.co.uk

GBP/USD, EUR/GBP, GBP/NZD

GBPUSD broke the 100 month moving average at 1.4080/60 for a sell signal targeting 100 day moving average at 1.3940/35 & almost as far as 1.3880/70 for decent profit on our shorts.

EURGBP broke support at the May/June low at 8563/8558 to bottom exactly at the next target of 8538.

GBPNZD bottomed exactly at support at 1.9700/1.9690 & rocketed to our target of target 1.9910/30 for an easy 200 pip profit on the day.

Daily analysis

GBPUSD outlook negative as we hold below 1.3935/40 targeting 1.3880/70 & 1.3840/30. Further losses target 1.3800.

Gains are likely to be limited with first resistance at 1.3940/50. Strong resistance at 1.3975/85. Shorts need stops above 1.4000.

EURGBP holding resistance at 8563/8558 on the bounce a sell signal targeting 8538, 8505, 8490, perhaps as far as 8475/70.

A break above 8580 however allows a recovery to 8600/05, perhaps as far as trend line resistance at 8615/25.

GBPNZD longs at support at 1.9700/1.9690 offered up to 200 pips profit on the run to 1.9910/30 & probably 1.9965/70 today, perhaps as far as 2.0035/45.

Downside is expected to be limited with first support at 1.9870/50. Longs need stops below 1.9820.

Chart

Author

Jason Sen

DayTradeIdeas.co.uk

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