GBPUSD - Breakout extension

Peter A Rosenstreich Swissquote Bank Ltd

EUR/USD

Strong bullish momentum.

EUR/USD continues to improve and is now close to the key resistance at 1.1890 (25/09/2017 high). Strong support is given at a distance at 1.1662 (17/08/2017 low).
In the longer term, the momentum is now turning largely positive. We favour a continued bullish bias. Key resistance is holding at 1.2252 (25/12/2014 high) while strong support lies at 1.0341 (03/01/2017 low).

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GBP/USD

Breakout extension.

GBP/USD continues to rise after the break of falling channel. A support can be found at 1.3237 (intraday low). Hourly resistances stand at 1.3265 (intraday high).
The long-term technical pattern is reversing. The Brexit vote had paved the way for further decline. Long-term support can be found at 1.1841 (07/10/2017 low). Long-term resistance given around 1.35 is at stake and indicates a long-term reversal in the negative trend. Yet, it is very unlikely at the moment.

USD/JPY

Stable.

USD/JPY has failed to hold above former resistance given at 113.26 (27/09/2017 low). Support is located at 111.99 (16/10/2017 low). Downside risks are rising as markets may soon take some short-term profit.
We favor a long-term bearish bias. Support is now given at 99.02 (10/08/2013 low). A gradual rise towards the major resistance at 125.86 (05/06/2015 high) seems 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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