Daily Market Technicals

Pressure remains on last week’s highs to start the new week with the $1.3672-77 resistance region remaining key overall. Bulls continue to look for a close above to shift overall focus back to the $1.3775 level although the 55 & 100-DMA’s may slow the move a little. Bears continue to look for a close below $1.3607 to ease bullish pressure while below $1.3564 shifts initial focus back to the key $1.3503-12 support region.

RES 4: $1.3701 55-DMA

RES 3: $1.3677 High June 6

RES 2: $1.3672 200-DMA

RES 1: $1.3651 High June 25

LPRICE: $1.3644

SUP 1: $1.3640 Hourly support June 30

SUP 2: $1.3607 Hourly support June 26 & 27

SUP 3: $1.3576 Low June 26

SUP 4: $1.3564 Low June 20

GBP/USD was unable to capitalise on the move higher Thursday and Friday with it again stalling ahead of the 2014 highs. Daily studies are correcting from O/B levels and may be hinting at cracks in the up-trend although bears continue to look for a close below the $1.6953 support to hint at a deeper correction. Bears will also look for a close below the 21-DMA ($1.6913) to add weight to the case for a retest of the key $1.6700-80 region.

Friday’s close below the 200-DMA was the first since Oct 2013 and adds weight to the bearish case. Bears now target the Y100.75-82 region representing 2014 and May monthly lows with overall focus now shifting to talk of sub Y100.00 levels for the first time since Nov 2013. Layers of resistance have developed in the Y101.48-102.35 region with bulls needing a close above the 200-DMA to ease bearish pressure and above Y102.35 to end bearish hopes

Initial resistance remains at the Y138.48 with this level having again capped the rally on Friday and bulls needing a close above to ease the bearish pressure. Overall bulls need a close above the 200-DMA to end bearish hopes and shift focus back to the Y140.40-95 region. The bounce from ahead of Thursday’s low is of some concern but a close above the 200-DMA remains needed to end bearish hopes

The move higher ran out of steam ahead of the 21-DMA last week with the move lower confirming that bears remain in control until a close above the 21-DMA is seen. Despite O/S daily studies, the move lower sees bears focus on the 2014 lows set earlier in the month with a break lower seeing bears targeting Gbp0.7764 2012 lows. Bulls now need a close above Gbp0.8018 to ease bearish pressure and above the 21-DMA to shift overall focus to the 100-DMA.