Dukascopy Bank Team
Dukascopy Bank SA
GBP/USD 1H Chart: Channel Down
Comment: GBP/USD has been in a strong down-trend for quite a while now, namely since the last quarter of the previous year. However, despite the currency pair forming a bearish channel, the prospects are ambivalent, considering that the technical indicators do not support further depreciation of the Sterling and the price is approaching a significant support level at 1.4566, represented by the 2015 low. Still, as long as the falling resistance line (currently at 1.47) remains intact, the bias is negative, and a close beneath 1.4566 will confirm the bearish outlook. At the same time, above 1.47 the Cable should target the 200-hour moving average, which is presently found at 1.4767.
CHF/JPY 1H Chart: Channel Down
Comment: During the last two weeks the price of the Swiss Franc managed to fall by five yen, and there is still potential for the currency to lose some 3-3.5 yen more in the not-too-distant future. There are no important support levels nearby (350 pips between the spot and 2015 low), and the longer-term technical indicators are mostly giving ‘sell’ signals. In the short run CHF/JPY is also bearish. We expect the rate to bounce off of 118 and decline down to 116 before there is any significant upward correction within the recently established channel. As for the sentiment, however, the Franc appears to be somewhat oversold—65% of open positions in the SWFX market are short.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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