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Key trading levels for GBP pairs

Forex Trading

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.

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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.

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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.

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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.

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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.

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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.

Jason Sen

Technical Analyst & Trader

For more information and trading education visit InterTrader

The content of this article is the personal opinion of the author and not InterTrader. You should under no circumstances consider the information and comments provided as an offer or solicitation to invest. This is not investment advice. The information provided is believed to be accurate at the date the information is produced.

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