Dukascopy Bank Team
Dukascopy Bank SA
GBP/USD 1H Chart: Channel Down
Comment: The Cable keeps trading between two falling parallel trend-lines, and it seems that the momentum will be preserved for a while. The rallies are to be capped by 1.4580, and even a break-out to the upside will not imply a prolonged recovery, being that around 1.4650 resistance is created by the daily R2, Jan 8 high, and 200-hour SMA. The immediate support is at 1.4495/90, but expect a sell-off down to 1.4450/40 before there is a notable upward correction. As for the longer-term prospects, there is a solid possibility of the price slowly descending towards 1.4230, namely the lowest level since 2010. Meanwhile, the Sterling is still not oversold—65% of positions are long.
GBP/NZD 1H Chart: Channel Up
Comment: GBP/NZD has successfully completed its bearish correction since the last time we reviewed the pair. This means the British Pound is now in a good position to resume the recovery from 2.15 started at the very end of 2015. The bullish outlook is also reinforced by the four-hour and daily indicators, and the price is expected to surpass the January 10 high and rise up to the 2.2470/30 supply area, where it will meet the weekly R1 level and the upper boundary of the channel. Alternatively, in case of a dip through 2.21, the first target will be the weekly pivot point, followed by the major demand zone circa 2.19, where the 200-hour moving average merges with the January 7 low.
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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