Layers of resistance are starting to stack up on the hourly timeframe in the $1.3660-00 region with the 55-DMA noted at $1.3694. Bulls need to see a close above $1.3700 to see immediate focus return to the $1.3738-75 region. The pullback from the $1.3700 level and failure to hold above the 200-DMA has seen immediate focus return to the 21-DMA with a close below hinting at a retest of the key $1.3503-12 support region and June monthly low.
RES 4: $1.3700 High July 1
RES 3: $1.3682 High July 2
RES 2: $1.3669 Hourly resistance July 2
RES 1: $1.3660 Hourly resistance July 3
LPRICE: $1.3647
SUP 1: $1.3640 Low June 30
SUP 2: $1.3607 Hourly support June 26 & 27, 21-DMA
SUP 3: $1.3576 Low June 26
SUP 4: $1.3564 Low June 20
Fresh 2014 and multi-year highs continued for GBP/USD albeit marginally with divergence noted on the momentum study combined and O/B studies in general hinting at a correction back towards the key $1.7063 support. In saying that, bears need a close below $1.7140 to ease bullish pressure a little and a close below $1.7063 to confirm a break of the daily channel and shift immediate focus back to the $1.6920-76 region with the 21-DMA noted at $1.6976.
RES 4: $1.7516 High Oct 20 2008
RES 3: $1.7285 Rising daily channel top
RES 2: $1.7198 High Oct 21 2008
RES 1: $1.7167 2014 High July 2
LPRICE: $1.7150
SUP 1: $1.7140 Low July 2
SUP 2: $1.7097 Low July 1
SUP 3: $1.7063 Previous 2014 high now support
SUP 4: $1.7007 Low June 27
Time spent below the 200-DMA (Y101.77) was brief with the recovery having to deal with layers of resistance Y101.95-102.35. Overall bulls need to see a close above the Y102.35 June 18 high to confirm an end to bearish hopes and shift immediate focus to the Y102.79-103.02 region and overall focus to the Y104.13 April monthly high. Bears now need a close below Y101.73 to hint at further downside with below Y101.23 needed to confirm
RES 4: Y102.35 High June 18
RES 3: Y102.17 100-DMA
RES 2: Y102.02 55-DMA
RES 1: Y101.95 21-DMA
LPRICE: Y101.80
SUP 1: Y101.73 Hourly support July 3
SUP 2: Y101.41 Low July 2
SUP 3: Y101.23 Monthly Low June 30
SUP 4: Y101.00 Weekly Bollinger band base
The 200-DMA continues to cap the rally with bulls looking for a close above to end bearish hopes of fresh 2014 lows and shift overall focus back to the Y140.99 level. The move higher has seen the daily Slow Stochastic now at modestly O/B levels and looking to correct which is a concern for bulls but in saying that, bears need a close below the Y138.54 low from Wednesday to reconfirm bearish pressure and see the June monthly lows initially targeted
RES 4: Y139.78 55-DMA
RES 3: Y139.53 38.2% Fibonacci 142.47-137.70
RES 2: Y139.31 High June 10
RES 1: Y139.18 200-DMA
LPRICE: Y139.05
SUP 1: Y139.96 Hourly support July 3
SUP 2: Y138.54 Low July 2
SUP 3: Y137.91 Low June 26
SUP 4: Y137.72 Low June 16
Fresh 2014 and two year lows retain overall bearish focus on the Gbp0.7764 2012 low. Layers of resistance have developed on the hourlies with bulls needing a close above Gbp0.7998 to ease bearish pressure a little. The Gbp0.8033 resistance remains key with bulls needing a close above to confirm a break of the 21-DMA (Gbp0.8016), ending bearish hopes and hinting at a bigger bounce targeting the Gbp0.8183-94 region.
RES 4: Gbp0.8033 High June 25
RES 3: Gbp0.7998 Low July 1 now resistance
RES 2: Gbp0.7980 Hourly resistance July 2
RES 1: Gbp0.7963 Hourly resistance July 2
LPRICE: Gbp0.7955
SUP 1: Gbp0.7951 2014 Low July 2
SUP 2: Gbp0.7923 Low Sept 27 2012
SUP 3: Gbp0.7887 Low Sept 5 2012
SUP 4: Gbp0.7764 2012 Low July 2012
