Important GBP Pairs’ Technical Outlook: 23.01.2019
Following its gradual recoveries since week-start, the GBPUSD again confronts four-month old resistance-line, around 1.2980, which if broken on a daily closing basis can propel the pair towards another important resistance, namely the joint of 200-day SMA and downward slanting trend-line stretched since June 2018, around 1.3080-90. Given the pair manage to print a D1 close beyond 1.3090, also clears 1.3100 mark, it may aim for 1.3180 & 1.3260 numbers to north. If at all the pair again fails to surpass the trend-line barrier, the 1.2910, the 1.2820 and the 50-day SMA level of 1.2755 could regain market attention before highlighting the 1.2700 mark including immediate support-line. Let’s say sellers fetch the quote under 1.2700 then the 1.2615 & 1.2570 might flash on their radars to target.
GBPJPY also ticked beyond 50-day SMA level of 142.20 but has to provide a daily closing bigger than that to please buyers with 144.00 and the 100-day SMA level of 144.50. However, 200-day SMA level of 145.55 may confine the pair’s rise after 144.50, if not then 146.00 & 146.80 may become optimists favorites. Meanwhile, the 140.90-80 and the 139.90-70 seem adjacent support to watch during the pair’s U-turn ahead of giving importance to 139.00 rest-point. Should prices keep trading southwards below 139.00, the 137.30 & the 135.75 might offer intermediate halts to its drop in direction to 132.35.
In spite of crossing the 1.7310-20 horizontal-region, the GBPCAD could find it hard to extend latest up-moves as an upward slanting trend-line, at 1.7365, adjacent to the 1.7400, might challenge the Bulls. In case the pair refrains to respect the 1.7400 resistance, the 1.7465 and the 1.7500 are likely following levels to appear on the chart. Alternatively, the 1.7250 may act as nearby support for the pair, breaking which lower-line of “Rising Wedge” formation, around 1.7155, can grab the limelight. If the pair slips below 1.7155, it confirms the short-term bearish pattern and could open the gate for a plunge towards 1.7050 & 1.7000 psychological magnet.
With the clear break of ten-month old descending trend-line and 200-day SMA, the GBPCHF may rally to 1.3030 and then to 1.3110 but the 1.3170 and the 1.3265-75 area could play their role of resistances afterwards. Given the pair’s rise above 1.3275, the 1.3390 and the 1.3450 can be aimed if holding long positions. On the contrary, a D1 close beneath 1.2920 may reprint 1.2875 and the 1.2830 as quotes while 1.2770 could entertain the pessimists then after. During the pair’s decline past-1.2770, the 100-day SMA level of 1.2750 and the 1.2660, including 50-day SMA, might offer rest to the downturn.