Dukascopy Bank Team
Dukascopy Bank SA
GBP/USD 1H Chart: Channel Up
Comment: The near-term outlook is bullish. A case of a decent rebound implied by the fact that GBP/USD is testing the lower boundary of the ascending channel is hardened by the four-hour and daily technical indicators. The main near-term challenge is a cluster of resistances between 1.4670 and 1.4670, consisting of the weekly R2 and the April and March highs. There we should be ready for a bearish correction. In May however, the rally will be expected to be stopped by a major 22-month falling trend-line. Meanwhile, in case the price dips under the green trend-line, the first target will be the daily S1 and April 27 low at 1.4474/73, followed by the 200-hour SMA at 1.4411.
EUR/CHF 4H Chart: Double Top
Comment: Extension of the Euro’s recovery from 1.0870 is unlikely. Even though the four-hour and daily technical indicators are mostly pointing north, the currency pair has formed a double top, a pattern that suggests a heightened risk of a sell-off. Still, the bearish scenario will not be confirmed as long as support at 1.0969/64 remains intact. Once the neck-line is broken, 1.0930/21 (monthly PP and 200-period SMA) are to become the next point of destination. An additional demand area is at 1.0870/60, created for the most part by the nine-month up-trend. As for the SWFX traders, they appear to be undecided with respect to the Euro’s prospects: 45% of open positions are long and 55% 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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