GBP Technical Analysis

Talking Points

• Strategy: Flat, Short Pending On Close Below 1.5585
• Awaiting Guidance Near Key Technical Barrier
• Morning Star Taking Shape On H4 Chart

GBP/USD is once again pressing against its range bottom near 1.5585 as a Doji emerges on the daily. The pattern suggests reluctance from the bears to drag the pair lower. Yet it is not a key reversal pattern, which in turn casts some doubt over the potential for a bounce back to the 1.5800 ceiling.

Doji Emerging Near Range-Bottom



The four hour timeframe is beginning to paint a more constructive picture. The close of the current candle in its present position would mark a Morning Star formation. Such a bullish reversal signal would return the risks higher towards the 1.5800 mark.

Morning Star Taking Shape In Intraday Trade




By David de Ferranti, Currency Analyst, DailyFX


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Talking Points:

• GBP/JPY Technical Strategy: Flat
• Support: 184.58, 181.41, 178.85
• Resistance: 188.32, 189.70, 191.45

The British Pound declined as expected against the Japanese Yen after putting in a bearish Evening Star candlestick pattern. Near-term support is at 184.58, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 181.41. Alternatively, a turn above channel floor support-turned-resistance at 188.32 clears the way for a challenge of the December 5 high at 189.70.
An actionable trade setup is absent for the time being. We will stand aside, waiting for the pair to produce a better-defined long or short trade opportunity.



--- Written by Ilya Spivak, Currency Strategist for DailyFX.com



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Talking Points:

• GBP/JPY Technical Strategy: Flat
• Support: 178.85, 176.29, 173.12
• Resistance: 181.41, 184.58, 186.53

The British Pound slumped to a two-month low against the Japanese Yen, with prices now eyeing support below the 179.00 figure. A daily close below the 50%Fibonacci retracement at 178.85 exposes the 61.8% level at 176.29. Alternatively a reversal above the 38.2% retracement at 181.41clears the way for a challenge of the 23.6% retracement at 184.58.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.



--- Written by Ilya Spivak, Currency Strategist for DailyFX.com



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Talking Points:

• GBP/USD Technical Strategy: Pending Long at 1.5373
• Support: 1.5166, 1.4980, 1.4750
• Resistance: 1.5322, 1.5551, 1.5737

The British Pound looks set to continue higher against the US Dollar having taken out resistance at the top of a falling channel in play since mid-September. A daily close above the 38.2% Fibonacci retracement at 1.5551 exposes the 50% level at 1.5737. Alternatively, a reversal below the intersection of channel top resistance-turned-support and the 23.6% retracement at 1.5322 clears the way for a test of a horizontal pivot at 1.5194.

Risk/reward considerations argue against entering long at current levels and we will set an entry order to buy the pair at 1.5373. If triggered, the position will initially target 1.5551 and carry a stop-loss activated on a daily close below 1.5194.



--- Written by Ilya Spivak, Currency Strategist for DailyFX.com


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Talking Points:

• GBP/JPY Technical Strategy: Flat
• Support: 182.08, 180.80, 178.73
• Resistance: 183.23, 184.27, 186.34

The British Pound snapped three days of losses against the Japanese Yen, moving to retest the boundaries of the down trend since early December. Near-term trend line resistance is at 183.23, with a break above that on a daily closing basis exposing the 61.8% Fibonacci retracement at 184.27. Alternatively, a reversal below the 14.6% Fib expansion at 182.08 clears the way for a challenge of the 23.6% level at 180.80.

Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.



--- Written by Ilya Spivak, Currency Strategist for DailyFX.com


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Talking Points:

• GBP/JPY Technical Strategy: Flat
• Support: 177.26, 175.77, 174.87
• Resistance: 178.74, 179.94, 181.14

The British Pound rose for a fourth consecutive day against the Japanese Yen, with prices now eyeing resistance above the 178.00 figure. Near-term resistance is at 178.74, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 179.94. Alternatively, a turn below the 23.6% Fib at 177.26 clears the way for a challenge of the 175.77-176.35 area (triple bottom, 14.6% retracement).

We see the overall GBPJPY trend as favoring the downside after last week’s break of the 12-month uptrend set from February 2014 lows. With that in mind, we will opt against entering long and treat on-coming as corrective, looking for the move to offer a selling opportunity once upside momentum is exhausted.



--- Written by Ilya Spivak, Currency Strategist for DailyFX.com


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• USD/JPY advance stalls at minor Fibo
• GBP/USD testing key upside pivot
• USDOLLAR rebuffed by former support

Price & Time Analysis: USDJPY

• USD/JPY bounced from Gann suport around 118.40 at the start of the week
• Our near-term trend bias is lower while below 121.00
• A move under 118.40/20 needed to set off a more important move to the downside in the exchange rate
• A very minor turn window is eyed early next week
• A close over 121.00 would turn us positive on USD/JPY

USD/JPY Strategy: Like the short side while spot remains below 121.00

Instrument	Support 2	Support 1	Spot	Resistance 1	Resistance 2
USD/JPY	117.40/20	19.10	119.40	119.80	121.00

Price & Time Analysis: GBPUSD

• GBP/USD rebounded sharply from the 38% retracement of the mid-April range at 1.4865
• Our near-term trend bias is higher in the pound while over 1.4865
• The 50% retracement of the February/April range at 1.5060 is a key pivot with traction above needed to set off a more important leg higher
• A very minor turn window is eyed tomorrow
• A daily close below 1.4865 would turn us negative on Cable

GBP/USD Strategy: Like the long side while over 1.4865

Instrument	Support 2	Support 1	Spot	Resistance 1	Resistance 2
GBP/USD	1.4865	1.4930	1.5030	1.5060	1.5120

--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com

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GBP/USD started a sharp falling. I think it makes sense to play short till 1.469. I'll open the deal at 1.4975 with stop-loss at 1.4985

Talking Points:

• GBP/JPY Technical Strategy: Flat
• Support: 179.94, 178.74, 177.26
• Resistance: 181.14, 182.62, 185.01

The British Pound resumed its push higher against the Japanese Yen after a brief bout of consolidation, with buyers aiming above the 181.00 figure. Near-term resistance is at 181.14, the 61.8% Fibonacci retracement, with a break above that on a daily closing basis exposing the 76.4% level at 182.62. Alternatively, a turn below the 50% Fib at 179.94 clears the way for a challenge of the 23.6% retracement at 177.26.

The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com


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• GBP/JPY Technical Strategy: Flat
• Support: 182.24, 180.96, 178.80
• Resistance: 184.03, 186.20, 189.70

The British Pound may be topping below the 185.00 figure against the Japanese Yen anew after forming a bearish Evening Star candlestick pattern. A daily close below rising trend line support at 182.24 exposes the 23.6% Fibonacci expansion at 180.96. Alternatively, a reversal above the 61.8% Fib retracement at 184.03 opens the door for a test of the 76.4% threshold at 186.20.

Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.



--- Written by Ilya Spivak, Currency Strategist for DailyFX.com


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