Since closing back below the 21-DMA ($1.6676) on Monday GBP/USD has continued to consolidate below with a close above $1.6686 needed to confirm a break above, seeing bullish focus return and the $1.6784-1.6820 region targeted. Bearish pressure currently sees the $1.6583 support as key with a close below favoured while $1.6686 caps, initially targeting the 55-DMA and 50% Fibo support and then the 100-DMA below.
The Y103.15 level that was noted as initial support Tuesday is now seen as initial resistance with a close above needed to reignite bullish focus and hint at a retest of last week’s high. The dip below the previous key support at Y102.83 followed by the failure to retake the Y103.15 level sees bears now targeting a retest of key moving averages in the Y102.22-38 region with a close below then seeing a retest of the Y100.79-101.21 region become the focal point.
The recent lower daily highs and lows following the failure to make headway above Y143.79 combined with overbought daily studies and a dip below the Y142.54 support sees euro-yen looking a little heavy with bears now looking for a continuation lower that initially targets the Y140.80-141.29 region. Bulls will need to see a close above hourly resistance at Y143.34 to ease the renewed bearish focus while above Y143.78 is needed to shift overall focus higher
Continued hesitation ahead of the 2014 high as daily studies approach O/B levels is of some concern for the bullish continuation with bulls looking for a close above Gbp0.8350 to reconfirm bullish focus and target the Gbp0.8410-27 region. Bears now need to see a close below Tuesday’s low to ease the current bullish pressure with a close below the Gbp0.8301 support needed to hint at a deeper correction initially targeting the 21-DMA.