Technical Outlook:

  • GBP/USD consolidating or topping?
  • USD/JPY has decent potential to trade higher soon

GBP/USD is either treading water at resistance and is nearing a breakout or is working on developing a top. If it is the former, then waiting for a breakout above 13206 may be the safest bet, putting cable above all resistance lines/levels. A breakout could open up a path towards the December high over 13500. On the flip-side, a breakdown below 13048 could clear a path lower with the June trend-line up first as support, but given the longer-term resistance levels we could see a larger down-move develop towards 12800. Generally speaking, the burden of proof is on sellers right now…

GBP/USD Daily Chart (consolidation or topping at resistance?)

GBP/USD daily chart

GBP/USD Chart by TradingView

GBP/USD 4-hr Chart (levels/lines to watch)

GBP/USD 4hr chart

GBP/USD Chart by TradingView

USD/JPY is bucking the trend in USD weakness, tentatively putting it on a path towards higher levels. This week it overcame a top-side channel line from June, but for that to continue it is ideal that we see it hold onto trend support off the monthly low. It is near it now. The monthly high at 10647 is around the trend-line, so a hold above that level will keep the upside intact. A break below and we might see further weakness set in.

USD/JPY Daily Chart (may work on move to 10800)

USD/JPY daily chart

USD/JPY 4-hr Chart (sitting near support)

USD/JPY 4-hr chart

USD/JPY 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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