Key trading levels for GBP pairs
GBP/EUR has rallied to the five-month trendline resistance at 1.1260/70 and the 100-day moving average at 1.1280. Failure to beat this 20-pip resistance area targets 1.1230 and first support at 1.1210/00. We should at least pause here on the downside but a move below would meet better support at 1.1165/55.
Bulls need a break above the August high at 1.1292 for a buy signal but we also need confirmation with a break above the 200-day moving average at 1.1315 to target 1.1360/70.
GBP/JPY bottomed exactly at good support at 146.20/30 on Monday. As long as the pair holds above here the outlook remains positive. We look for the next target of 147.60/70 and a move above here meets strong resistance at 148.25/35.
The key support is at 146.30/20 and I expect a bounce from here. However, if we continue lower look for an excellent buying opportunity at 145.70/60, with stops below 145.30. If this fails I expect we will resume the nine-month bear trend.
GBP/CAD runs into resistance at 1.7175/85 from the 100-day moving average, the six-month trendline and last week’s high. Failure to beat this resistance targets 1.7100/1.7090, then support at 1.7050/40. This may hold initially but further losses meet better support at 1.6975/55. This would be a good area for some profit-taking. A break below 1.6930 would then target 1.6890/80 and 1.6820/10.
A break above 1.7215 triggers a buy signal targeting first resistance at 1.7285. If we break higher here, look for 1.7380/90 and possibly 1.7450/60.
GBP/NZD starts a new leg higher with the break above the 10-month consolidation period. We should target the green 500-week moving average at 2.0300, and then 2.0350. Eventually we are likely to see 2.0620, perhaps as far as 2.0720 and 2.0800.
Failure to hold above key support at 1.9750/20 kills the breakout buy signal.
GBP/USD bulls need a break above the 100-day moving average at 1.3170/80 for a medium-term buy signal, targeting 1.3210/15, 1.3260/70 and probably as far as 1.3310/20.
Failure to beat 1.3170/80 targets 1.3100/1.3090 before strong support at 1.3060/50. Long positions need stops below 1.3030. A break lower is a sell signal targeting minor support at 1.3005/00. A move below 1.2980 would then target 1.2965/60 and support at 1.2925/15.
Technical Analyst & Trader
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