The recovery from the brief dip below the 100-WMA has seen the GBP/USD capped around the $1.6281 resistance level confirming its significance. Bulls continue to look for a close above $1.6281 to ease bearish pressure with a close above $1.6440 needed to shift immediate focus to layers of resistance $1.6499-1.6650. Initial support is now noted in the $1.6183-1.6204 region with bears needing a close below to reconfirm bearish pressure and target $1.6007-48.
After last week’s stellar gains USD/JPY is currently pausing to catch its breath at the upper end of last week’s range. Layers of support have developed in the ¥105.72-107.09 region with bears needing a close below ¥106.52 to confirm an easing of bullish pressure. Overall a close below ¥105.72 is needed to hint at a deeper correction with below the 21-DMA then confirming. The ¥110.68 Aug 2008 high remains the current focal point with O/B studies and the Bollinger band top the key issues for bulls.
The rally that commenced from just ahead of the 2014 low last week is currently pausing ahead of the Y139.31 July monthly high as it dips back below the Bollinger band top (Y138.99). The close above the 100-DMA adds support to the bullish case with focus having shifted to the Y139.84-140.11 region where the 200-DMA is located. Bears now look for a close below Y138.10 to confirm a break below the 100-DMA and an easing of bullish pressure whereas below the 21-DMA (Y137.43) targets 2014 lows.
Following on from the sharp correction lower Wednesday the EUR/GBP found support below the 55-DMA (£0.7954) and has managed to work its way back above the 21-DMA (£0.7972). Bulls need to see a close above £0.8003 to ease the bearish pressure and above the 100-DMA to shift focus back to the £0.8066 level. The £0.7938 low from last week is key support this week with a close below needed to confirm bearish pressure and initially target 2014 lows.