The pullback from the $1.2845 resistance gathered steam Wednesday with the close below the 21-DMA confirming a shift lower in focus to the $1.2501 2014 low. Layers of resistance have started to accumulate with bulls needing a close above $1.2742 to ease bearish pressure and a close above $1.2845 to shift focus back to the $1.2995 level. The Bollinger band base is the key concern for bears and may limit downside follow through.
RES 4: $1.2959 38.2% Fibonacci $1.3701-1.2501
RES 3: $1.2902 High Sept 23
RES 2: $1.2845 Hourly resistance Oct 16
RES 1: $1.2742 Hourly resistance Oct 22
LPRICE: $1.2636
SUP 1: $1.2605 Low Oct 10
SUP 2: $1.2547 Bollinger band base
SUP 3: $1.2501 2014 Low Oct 3
SUP 4: $1.2425 Weekly Bollinger band base
Despite recent pressure on the 21-DMA GBP/USD bulls have been unable to capitalize with the pair pulling back from the $1.6184 level. Initial resistance is now noted on the hourlies in the $1.6079-1.6142 region with bulls now needing a close above $1.6142 to ease bearish pressure. The move lower has accelerated below the 21-DMA ($1.6116) with focus having shift back to retests of the 2014 low and the Bollinger band just above.
RES 4: $1.6184 High Oct 21
RES 3: $1.6142 Alternating hourly support/resistance
RES 2: $1.6104 Alternating hourly support/resistance
RES 1: $1.6079 Hourly resistance Oct 22
LPRICE: $1.6046
SUP 1: $1.6011 Low Oct 22
SUP 2: $1.5940 Low Oct 16
SUP 3: $1.5875 2014 Low Oct 15
SUP 4: $1.5854 Monthly Low Nov 12 2012
Recent flirtations with the 55-DMA resulted in a bounce back towards the ¥107.60 resistance that has so far confirmed its significance. Failures ahead of ¥107.60 confirm bearish dominance with bears looking for a close below the 55-DMA to add weight to the bearish case initially targeting the ¥104.28-68 region. Bulls need a close above ¥107.60 to confirm an easing of bearish pressure with a close above ¥108.74 remaining needed to shift focus back to the ¥110.09-68 region.
RES 4: ¥109.25 High Oct 7
RES 3: ¥108.74 High Oct 8
RES 2: ¥107.93 21-DMA
RES 1: ¥107.60 Hourly resistance Oct 13
LPRICE: ¥107.25
SUP 1: ¥107.12 Hourly support Oct 23
SUP 2: ¥106.79 Low Oct 22
SUP 3: ¥106.57 Hourly support Oct 21
SUP 4: ¥106.13 55-DMA
The recovery from the ¥134.10 level appears to have come to an end ahead of the 21-DMA with the EUR/JPY looking a heavy once again. With the move lower now accelerating, overall focus has shifted back to the ¥134.10 level. Bulls now need a close above ¥36.21 to ease bearish pressure with a close above ¥137.97 needed to confirm a break of key DMAs, ending bearish hopes and targeting 2014 highs.
RES 4: ¥137.72 100-DMA
RES 3: ¥137.28 Alternating hourly support/resistance
RES 2: ¥136.98 21-DMA
RES 1: ¥136.21 High Oct 22
LPRICE: ¥135.53
SUP 1: ¥135.44 Low Oct 22
SUP 2: ¥135.00 Bollinger band base
SUP 3: ¥134.10 Low Nov 20 2013
SUP 4: ¥131.20 Monthly Low Nov 7 2013
Bears are back in control following the sharp reversal lower following Wednesday’s failure at the 55-DMA (£0.7925). The pair is currently flirting with the 21-DMA (£0.7876) with bears now favouring a break lower and a return in overall focus to the 2012 & 2014 lows in the £0.7764-66 region. The £0.7951 resistance remains key with bulls needing a close above to confirm a break of 55 & 100-DMAs and target Gbp0.8067.
RES 4: £0.8067 Monthly High Sept 10
RES 3: £0.7985 Hourly resistance Oct 16
RES 2: £0.7951 Alternating hourly support/resistance
RES 1: £0.7927 High Oct 22
LPRICE: £0.7873
SUP 1: £0.7850 Low Oct 10
SUP 2: £0.7820 Low Oct 2
SUP 3: £0.7766 2014 Low Sept 30
SUP 4: £0.7764 2012 Low July 23 2012
