Technical Outlook:

  • GBP/USD extended streak into confluent resistance
  • AUD/JPY has a nice sequence on 4-hr chart

GBP/USD is on a ten day, possible eleven day winning streak if today holds as another up-day. A streak in of itself is not reason to look for a reversal, but it does show how extended Cable has become. Furthermore, with confluent resistance at hand it may be on the verge of at least taking a break. Depending on how that unfolds, it will determine whether the confluence of the 2014/2018 trend-lines and earlier-year price resistance will act as a longer-term ceiling, or only a reason for price to pause before the trend resumes higher. For now, risk/reward doesn’t appear favorable for new longs, while would-be shorts may be best served waiting for momentum to turn down before becoming aggressively involved.

GBP/USD Daily Chart (steadily heading higher)

GBP/USD daily chart

GBP/USD Chart by TradingView

AUD/JPY has an interesting set-up on the 4-hr time-frame. It is below a pair of trend-lines/slopes extending higher from April and more recently June. This comes after a rejection last week at the June high. The decline off the monthly high hasn’t been met with any real effort to push it higher despite support, creating a horizontal pattern that suggests the rejection could pick up more steam to the downside. Watch for a close below 74.82 for confirmation of another leg lower.

AUD/JPY 4-hr Chart (watch 74.82)

AUD/JPY 4-hr chart

AUD/JPY Price Chart by TradingView

For all the charts we looked at, check out the video above…

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—Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at@PaulRobinsonFX





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