Dukascopy Bank Team
Dukascopy Bank SA
GBP/USD 4H Chart: Channel Down
The Cable trade was contained within the borders of a descending channel pattern for more than two months now. The outlook, however, is bullish, as the pair is supported by a strong cluster, represented by the 55 and 100-period SMAs, the weekly and the monthly PPs, just below the spot price. From here on we should see gains reach the 1.44 mark, where the channel's resistance line coincides with the monthly R1. On the other hand, if the immediate support fails to keep the pair from falling, another retest of the channel's lower boundary should then be at hand. Meanwhile, technical indicators are in favour of the bearish outcome, and 57% of traders are long the Sterling.
CHF/JPY 4H Chart: Falling wedge
The Swissie was falling against the Japanese Yen for quite some time and has just bounced back from the falling wedge's resistance line. The 55-period SMA crossed the 100-period one to the downside, indicating that bullish momentum might follow. If demand at the SMA intersection is sufficient, the breach of the resistance line is to push the exchange rate towards 119.08—Feb high. However, the bearish outlook is more promising, with the pair to start moving towards the pattern's support, which is reinforced by the weekly S3 and the monthly S1, and, as a result, cause a rebound, preserving the wedge. Meanwhile, technical indicators are unable to confirm either scenario.
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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