Focus is Back on the UK

General Elections in the UK are getting closer and most probably market attention will be shifted towards this way in the next few days. That should bring us a bigger volatility to the pairs with the GBP, creating interesting trading occasions.

GBPUSD broke the up trendline and used the 1.2860 as a local resistance. Using this price action, today we made new monthly lows. The price is trying to defend the local support on the 1.2280 but if this one will be broken, there will be a chance for a 200 pips downswing.

EURJPY created a good looking hammer on a daily chart yesterday but today the bullish sentiment is not showing up. Technical situation looks optimistic though and as long as we stay above the 123.20 support, buyers can sleep at night without nightmares.

EURGBP has similar situation as the EURJPY – a hammer on a daily chart bouncing of a support but they used that much better. The price is advancing higher proving that breakout of the black down trendline was not an accident. Sentiment is definitely positive here.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis