Swissquote Daily Technical Report: GBP/USD – Approaching the resistance at 1.6340

In Swissquote’s Wednesday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for GBP/USD and GBP/JPY. To view and download the entire report, click here (PDF).

GBP/USD: Approaching the resistance at 1.6340

• GBP/USD is getting closer to its resistance at 1.6340 (05/09/2014 high), despite yesterday’s break of the hourly support at 1.6186 (11/09/2014 low). Another resistance stands at 1.6497. An hourly support now lies at 1.6162 (16/09/2014 low).

• In the longer term, prices have collapsed after having reached 4-year highs. The break of the key support at 1.6220 confirms persistent selling pressures and opens the way for further decline towards the strong support at 1.5855 (12/11/2013 low). A key resistance now stands at 1.6644.

GBP/JPY: Yesterday’s bullish reversal suggests persistent buying interest

• GBP/JPY made a bullish intraday reversal yesterday, indicating persistent buying interest despite the recent overextended rise. Monitor the key resistance at 175.37. A support area lies between 172.99 (16/09/2014 low) and 172.78.

• In the long-term, the break of the major resistance at 163.09 (07/08/2009 high) calls for further strength towards the resistance at 179.17 (15/08/2002 low). A decisive break of the strong support at 169.51 (11/04/2014 low) is needed to invalidate this scenario.

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