Bears have been unable to capitalize on recent pressure on the $1.1260 support with the break and close above the 21-DMA, the first since mid-Dec, having eased bearish pressure. Immediate focus shifts to the $1.1541 resistance with a break above then targeting layers of resistance in the $1.1680-1.1900 region. Bears now need a close below $1.1364 to reconfirm the bearish bias and below $1.1260 to shift immediate focus to 2015 lows.
RES 4: $1.1727 Low Jan 14
RES 3: $1.1680 High Jan 21
RES 2: $1.1661 38.2% Fibonacci retracement 1.2571-1.1098
RES 1: $1.1541 Low Jan 21 now resistance
LPRICE: $1.1438
SUP 1: $1.1364 Alternating hourly support/resistance
SUP 2: $1.1260 Low Jan 28
SUP 3: $1.1224 Low Jan 27
SUP 4: $1.1097 2015 Low Jan 26
Since closing above the 21-DMA earlier in the month the GBP/USD has not managed to close back below with the resulting bounce Thursday seeing the pair close above the 55-DMA ($1.5373) for the first time since late July, adding support to the bullish case. Bears now need a close below the $1.5343 support to ease bullish pressure and below the 21-DMA to regain the bearish bias and target 2015 lows.
RES 4: $1.5632 100-DMA
RES 3: $1.5622 High Dec 31
RES 2: $1.5486 Previous daily support now resistance
RES 1: $1.5468 61.8% Fibonacci retracement 1.5788-1.4951
LPRICE: $1.5415
SUP 1: $1.5373 55-DMA
SUP 2: $1.5343 Hourly support Feb 12
SUP 3: $1.5200 Low Feb 9
SUP 4: $1.5171 21-DMA
The failure by bulls to carry on with the break of recent trend lines and key DMAs is a concern with the pair having dipped back towards the 21-DMA today. Bears need a close below the 21-DMA to end bullish hopes and to shift overall focus back to the Y115.45-85 region with the 100-DMA now noted at Y115.67. Bulls need a close above Y119.28 to relieve the pressure on the 21-DMA but overall while the 21-DMA supports a bullish bias remains with the key concern being the Bollinger band top.
RES 4: ¥121.85 2014 High Dec 8
RES 3: ¥120.78 2015 High Jan 2
RES 2: ¥120.48 High Feb 11
RES 1: ¥119.28 Alternating daily support/resistance
LPRICE: ¥118.47
SUP 1: ¥118.33 Low Feb 10
SUP 2: ¥118.19 21-DMA
SUP 3: ¥117.52 Rising daily trend line
SUP 4: ¥116.66 Low Feb 2
Recent topside pressure on the Y135.79 level resulted in a close above and a shift in bullish focus to layers of resistance in the Y138.94-142.07 region where key DMAs are located. Initial support is now noted at Y134.69 on the hourlies but bears need to see a close below the 21-DMA, ending bullish hopes and shifting overall focus back to the Y129.97-132.27 region. Bulls now look for above Y137.67 to add support to the bullish case and target key DMAs Y139.53-141.00.
RES 4: ¥139.56 200-DMA
RES 3: ¥138.94 High Jan 14
RES 2: ¥137.65 High Jan 20, 38.2% Fibo 149.80-130.02
RES 1: ¥136.72 High Feb 12
LPRICE: ¥135.51
SUP 1: ¥134.69 Low Feb 12
SUP 2: ¥134.59 21-DMA
SUP 3: ¥134.04 Low Feb 10
SUP 4: ¥133.68 Low Feb 9
The £0.7595 level confirmed significance with the steady recovery from 2015 lows topping out at this level before reversing sharply lower. Bearish pressure has resulted in fresh 2015 and 7+ year lows with immediate bearish focus having shifted to the daily Bollinger band base. Bulls now need a close above £0.7462 to ease bearish pressure and above £0.7520 to shift focus back to the key £0.7595 level.
RES 4: £0.7715 High Jan 21
RES 3: £0.7595 Low Jan 16 now resistance
RES 2: £0.7520 Hourly support Feb 2 now resistance
RES 1: £0.7462 High Feb 9
LPRICE: £0.7417
SUP 1: £0.7397 Hourly support Feb 12
SUP 2: £0.7372 2015 Low Feb 12
SUP 3: £0.7341 Bollinger band base
SUP 4: £0.7239 High Dec 12 2007 now resistance