GBPUSD: Lack of follow-through

EUR/USD

Rising slowly.

• EUR/USD keeps pushing higher and is now consolidating. Hourly support and resistance are given at 1.2112 (12/01/2018 low) and 1.2475 (31/01/2018 high). The technical structure suggests further short-term sideway moves.

• 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

Lack of follow-through.

• GBP/USD momentum is fading following its descent at 1.3782. The pair is trading between hourly support and resistance at 1.3678 (12/01/2018 low) and 1.3945 (19/01/2018 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

Bullish consolidation.

• USD/JPY has now entered in a short-term bullish momentum, heading higher along the 106.70 range. Hourly support and resistance are given at 104.97 (11/10/2016 high) and 107.27 (25/02/2018 high). The bearish pattern started in January 2018 is maintained. The short-term technical structure suggests short-term increase.

• 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.