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Forex4you Technical Analysis 23/12/10

GBP/USD: technical analysis

The price not only breached target level 1.5410/00, but passed beyond it, reaching level 1.5350/60. Then, the price rebound up and it's currently consolidating around 1.5400, at level 1.5390/80. Indicators suggest further "bearish" trend, although "bullish" MACD divergence gives reasons to be cautious and consider a possible large-scale pullback upwards. In this case, it's worth taking into account strong support at 1.5320/30, which has been holding back the "bears" for the whole August/September, but eventually triggered a reversal to a medium-term growth. If a decline continues now, this support will most likely become an insuperable hindrance for quite a long time. Growth above resistance 1.5530/70 will be a signal to a big pullback with the first target at 1.5650/60 and then - 1.5710/00.

EUR/USD: technical analysys

The pair repeated yesterday's scenario - having reached level 1.3070/80, it bounced upwards, testing resistance 1.3050/60, and then returned to decline. The trading is currently carried out at 1.3110/00. Indicators suggest a down trend. Since no significant changes have been made, the outlook remains the same  -  support  1.3050/60 is likely to be tested, and, in case of a breakout, the price may plunge even further, to 1.2970/80. Rebound upwards to 1.3230 and 1.3300/10 is also a possibility, even from the current levels.

USD/JPY: technical analysis

Support 83.30/40 has been holding back the "bears" for quite a long time, but this time it didn't, so the price declined to another strong barrier on the way down - level 82.80. Indicators turned down, suggesting further bearish trend. Support 82.80/90 breakout clears up the way to support 82.30 with a possible test of level 82.00. At the same time, currently tested level is strong enough to stop a decline, although reversal to growth is unlikely, at least for the near future.

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