The former forecasts came true. The price tumbled down to 1.2150/60/40, which was mentioned yesterday, but thereupon the bounce out of the support at 1.2155 upturned to 1.2220/10, where exactly it currently resides. The indicators don’t give a handle for presuming the reversal upward still yet as they prefer downgrading. Though, if the resistance at 1.2250 is overwhelmed it will be necessary to refrain from selling and consider the possibility of the “bearish” scenario’s implementation. Nevertheless, until the “Bears” predominate the market the expectances of the price comeback to 1.2150/60 is much more probable. Moreover, as long as this support is breached the near-term checking up of 1.2060/70/50 may be taken into account. Otherwise, the alternative scenario will be expedient subject to the fixation of the price above 1.2240/50, as mentioned before.
GBP/USD: Technical Analysis
The yesterday mentioned forecasts concerning the failure in the first attempt of price overwhelming the support at 1.5020-1.4990 came true. Thereupon the checking up of 1.5020/15 the price rolled back upward and was consolidating just below the resistance at 1.5100/1.5090 for a long time. Another like attempt is currently being observed. Thereupon the endurance checkup of 1.4990/80 the price has returned to 1.5030/40, where exactly it currently resides. The indicators have changed its preferences for “bearish” after all. However, the change of move to downgrading will be confirmed with the breach of that most decisive obstacle – the support at 1.5020-1.4990, which has just withstood another attack. In other words, all previous presumptions keep their relevance: if this obstacle on the way down is over passed it will be possible to take the long term “bearish” trend as renewed and the next support will be at 1.4920/00. However, there’s a high probability of comeback to upturn until the breach of the above mentioned range of support. The first essential resistance above the local maximum of 1.5120 will be at 1.5170/60.
USD/JPY: Technical Analysis
The previously mentioned target at 88.20/30 has been achieved, and the pair is currently consolidating next to this support at 88.60/50. The indicators ahead prefer the “bearish” trend, and that greatly proves the former forecasts conditional upon breaching of 8.20/30. It means the high probability of price sagging down to the new annual minimums, 87.70 and 87.30/40, keeps in force still yet. However, both the present slight diffidence at the indicators and the steadiness of this support warn about possible cease and sideways trading for a while.
Analysis by: www.Forex4you.com written by Arkady Nagiev
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