GBP/USD - Another bottom in a downtrend that won't get enough

Euro – Boredom, small moves, is it a “triangle”?

The Euro confirmed it is building the triangle that we suggested yesterday, after it dropped only pips below the lower triangle line, and then it bounced back and rose until it touched the upper line in a very accurate fashion (please refer to the attached chart). The price is still trading within the triangle exactly as it was suggested yesterday, waiting for a real and decisive break for one of its limits. These limits have narrowed towards 1.3658 & 1.3581. We can only hope to end this boredom with a break of one of these levels. If the resistance at 1.3658 is broken, we expect the Euro to jump and test the last week’s at 1.3734. And if this important resistance is broken too, we will see the Euro flying to 1.3861. On the other hand, if the support at 1.3581 is broken, we expect a test of the rising trend line from 1.3442 as a first target (this line is currently running at 1.3477), and if broken we will reach a fresh cycle low at 1.3379.

Support:
• 1.3581: the lower limit of the triangle formation.
• 1.3477: the rising trend line from 1.3442 on the hourly charts.
• 1.3379: Apr 14th high.

Resistance:
• 1.3658: the upper limit of the triangle formation.
• 1.3734: Mar 3rd top.
• 1.3861: Jan 26th low.



USD/JPY – Dollar just won’t give up  

The Dollar-Yen kept trading above the important support 89.69 all through the past 24 hours, and it rose breaking the resistance 90.26, and as we expected reached a new weekly high at 90.80, only 4 pips below our suggested target. With this obvious penetration of 90.60, the Dollar is in a good position to achieve more gains, since the technical plea in favor of the Yen (which is stopping accurately at a Fibonacci resistance level) is no longer there. This advancement which reached 90.80 so far, is invited to hold above short term support 90.06, in order to achieve more gains. The resistance is at 90.60, and if broken, USDJPY will jump strongly, targeting 91.60, and then 92.31. IF the support is the level which will give way, this would be an indication that yesterday’s rise has shown all that it could, and the pair will slip again towards 89.33, and may be the important bottom 88.53.

Support:
• 90.06: Fibonacci 61.8% for the short term.
• 89.33: Jan 26th low.
• 88.53: Feb 4th important bottom.

Resistance:
• 90.60: Fibonacci 61.8% for the drop from 92.13.
• 91.60: Oct 29th high.
• 92.31: Oct 26th high.



GBP/USD – Serious attempts to back inside the broken channel

The Pound broke the support 1.4955, and reached 1.4871, stopping a little before the suggested target, then it completely changed direction. But the rising move which followed bumped into our resistance from yesterday’s report 1.4991 with amazing accuracy (the high for the past 24 hours is 1.4990). This crash into 1.4991 is in fact a string of serious attempts to go back inside the broken channel on the hourly chart (please refer to the attached chart). It will be a thriller to see if the Pound can come back inside this channel and start achieving gains, or will it hold under it, and drop gradually towards areas below this cycle’s bottom 1.4781. Today resistance will stay at 1.4991, and if broken, the price will be on its way to test the important Fibonacci resistance levels 1.5070 & 1.5175. But if the price breaks the support 1.4955m the drop will continue, and the next set of targets would be 1.4852, and then the important 1.4753. As long as the price is trading under the broken channel, technical analysis will hold a bias towards the downside.

Support:
• 1.4955: important intraday support.
• 1.4852: Mar 2nd low.
• 1.4753: May 1st low.

Resistance:
• 1. 4991: the resistance which proved its importance in the past 24 hours.
• 1.5070: Fibonacci 61.8%for the short term.
• 1.5175: Fibonacci 38.2% for the drop from 1.5813.