Dukascopy Bank Team
Dukascopy Bank SA
GBP/USD 4H Chart: Channel Down
Comment: The Cable will shortly approach the upper edge of the channel down pattern, meaning we are likely to observe some selling pressure near 1.43. One more bullish obstacle is represented by the 200-period SMA at 1.4267. According to the 4H technical indicators, the latter resistance is unlikely to contain the purchasing activity, while some weakness is estimated on daily and weekly bases. However, SWFX market sentiment is 56% long at the moment, meaning we are not ruling out a spike above 1.4345 where the upper trend-line is located right now. However, to confirm the pattern to the upside the Pound Sterling should also eliminate the first monthly supply at 1.4446, followed by weekly R2 at 1.4518.
GBP/JPY 4H Chart: Channel Down
Comment: The Pound is moving in a similar direction versus the Japan’s currency, as it is doing against the Greenback. In the foreseeable future we expect GBP/JPY to test the 200-period SMA at 164.79, but only in case the bulls are successful in dealing with the monthly pivot point at 162.21, which is the immediate resistance for this cross. Development to the upside is backed by the SWFX market sentiment in a slight majority (53%) of all cases, while 4H studies are additionally supporting the positive outlook. However, weekly indicators are much more sceptical on the matter. We foresee a failure at 168.81, where the upper boundary of the channel down pattern is guarded by the monthly R1 and weekly R3.
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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