Dukascopy Bank Team
Dukascopy Bank SA
GBP/USD 1H Chart: Channel Down
Comment: Despite previous bullish signals on the hourly time-frame, GBP/USD entered a bearish market and stuck around the ultimate bottom of 1.1996 it had established mid-January. The pair is currently in a ranging motion which is likely to fade soon, and, while inconclusive, a rally will most likely push towards 1.2427, the immediate resistance. The pair will ultimately target the upper trend-line around 1.2487, but encounter a set of tough areas that are unlikely to let through without stealing some momentum. Contrarily, a dip is still possible due to the inconclusive nature of the previous bottom boundary test, meaning that 1.2377, the trend-line and daily S3 cluster would cut the motion from below.
USD/DKK 1H Chart: Channel Up
Comment: USD/DKK topped the half-year climb at 7.1560 and now appears to be forming a head and shoulders on the daily chart. The neck-line has arguably been tested at 7.0562 and the pair has entered a small-scale channel up pattern on the hourly chart. While bullish pressures still stem from the new pattern, the pair encountered the 7.0089 level, which it has not been able to break on two attempts, putting forth two scenarios – a bullish ascending triangle and a potential double top. We would expect the double top to hold rather than the triangle due to the senior head and shoulders which should ultimately lead to 6.8848 on a large scale, with short-term immediate supports at 6.9980 and 6.9951, respectively.
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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