EUR/USD held above the Apr 4 reversal low at $1.2746 and immediately turned higher to post a huge white candle, climbing over 400 pips to a high of $1.3207. Price action today tested down to the 55 and 200-DMAs, around $1.3060-75, but turned higher from an hourly low of $1.3069. If bulls hang onto the gains we may see a test of the Jun 18 & 19 highs at $1.3416/17, however weekly and monthly studies remain bearish adding caution to the upside.
R 4: $1.3271/79/95 23.6% of $1.2797-1.3417, Lows Jun 13, 14
R 3: $1.3228 Former 50.0% of $1.3711-1.2746
R 2: $1.3200/07 High Apr 17, High Jul 10
R 1: $1.3147/61/80 Hourly high, Low Jun 20
Latest price: $1.3105
S 1: $1.3069 Hourly low
S 2: $1.2985/98 Low Jun 26, High May 22
S 3: $1.2923-43 Low Jul 3, Jul 2012 Supp line, 55-wk MA
S 4: $1.2877/83 50.0% of $1.2043-1.3711, Low Jul 4
GBP/USD climbed over 300 pips to leave a long white candle after failing to retest supp at $1.4814, the Jul 9 low, potentially leaving a double-bottom pattern. The pair needs to retest the Jun 17 high to confirm, seen around $1.5751. Dly studies now looking bullish and bulls will be looking to close above the 38.2% level of the move from the Jun 17 high to the Jul 9 low, seen around $1.5171. However, bears also testing supp, initial supp at $1.5080.
R 4: $1.5401 61.8% of $1.5479-1.4813
R 3: $1.5281-93 Highs May 20, 17
R 2: $1.5243 High Jul 1
R 1: $1.5183/84/95 61.8% $1.4832-1.5752, High Jul 10
Latest price: $1.5125
S 1: $1.5080 Hourly low
S 2: $1.5035/49 23.6% of $1.5732-1.4814
S 3: $1.5009 Low May 29
S 4: $1.4966/81 Highs Jul 8, 9