Daily Market Technicals

Fresh 2014 and 2 year lows continue for the pair as bears remain firmly focused on the 2012 low with Thursday’s bearish close adding weight to the case. Key concerns for bears come from O/S daily studies and the Bollinger band base. Layers of resistance continue to accumulate with bulls now needing a close above $1.2446 to ease bearish pressure and above $1.2591 to shift focus back to the $1.2771-1.2900 region.

RES 4: $1.2591 Hourly resistance Oct 31

RES 3: $1.2539 Alternating hourly support/resistance

RES 2: $1.2446 Hourly resistance Nov 6

RES 1: $1.2386 Hourly resistance Nov 7

LPRICE: $1.2378

SUP 1: $1.2241 Low Aug 10 2012

SUP 2: $1.2133 Low Aug 2 2012

SUP 3: $1.2042 2012 Low July 24 2012

SUP 4: $1.1876 2010 Low July 2010

GBP/USD continues to extend losses below the 200-WMA ($1.6022) as it again trades at fresh 2014 and 14 month lows. Immediate focus now shifts to the $1.5717-75 region with a break lower seeing bears shifting focus to a retest of the $1.5425-62 region. Layers of resistance continue to accumulate with bulls now needing a close above $1.5933 to ease bearish pressure and above $1.6085 to confirm breaks of the 21-DMA and falling daily trend line, shifting focus to $1.6185-1.6228.

Immediate pressure remains on the ¥115.51 recent 2014 and multi-year highs following the bounce from ¥114.05 with overall focus remaining on the ¥119.82 Aug 2007 monthly high. Key concerns for bulls come from the O/B daily studies and Bollinger band tops but in saying that, bears continue to look for a close below ¥114.05 to ease bullish pressure and below ¥112.98 to shift immediate focus back to the ¥110.10 Oct 1 high.

The lack of follow through following Thursday’s move to fresh 7 month highs combined with O/B daily studies and a relatively bearish close that sees the pair capped ahead of ¥142.85 today are significant concerns for bulls. In saying that, bears now need a close below ¥142.18 to hint at a deeper move lower that initially targets the ¥140.39 support. Bulls now need a close above ¥142.85 to regain control and reconfirm bullish focus on 2014 highs.

The £0.7864 level confirmed its significance as resistance Thursday with bears taking comfort in the sharp correction lower that followed. Bulls continue to look for a close above £0.7864 to confirm an easing of bearish pressure and above £0.7927 to confirm a break of 21, 55 & 100-DMAs, ending bearish hopes and shifting focus back to the £0.8067-70 region. While £0.7864 caps bears remain firmly focused on the £0.7764-66 region.