Technical Outlook – GBPUSD, EURGBP and GBPAUD

GBPUSD

Following a test of the lower trend-line support of a descending trend-channel formation on daily chart, the rebounded sharply and is now moving closer to 200-day SMA resistance, currently near 1.5340-50 area. Momentum above 200-day SMA might continue support the pair towards reclaiming 1.5500 psychological mark and aim towards testing the upper trend-line resistance of the channel, currently near 1.5550 region. On the downside, 1.5250-40 now seems to have emerged as immediate support, which if broken is likely to take the pair back towards 1.5100 round figure mark support. Reversal from near 200-day SMA resistance might continue dragging the pair towards testing sub-1.5000 important psychological mark support, also coinciding with the lower trend-line support of the channel.

EURGBP

On 1-hourly chart, the pair is oscillating within a well-established short-term descending trend-channel and is currently retracing from the upper trend-line resistance of the channel. Moreover, the pair is trading below 0.7000 mark and a subsequent break below 0.6980 level is likely to increase the pair’s vulnerability to continue drifting lower in the near-term. The pair then could drop to test the lower trend-line support of the channel, currently near 0.6940-30 area, also coinciding with nearly 8-year low touched in July this year. Meanwhile, a move above 0.7000 mark might continue to face strong resistance at the upper trend-line resistance of the channel, currently near 0.7010-20 area. A decisive break-through the trend-channel resistance might negate the possibilities of a multi-year low levels and lift the pair back towards 0.7100 mark resistance.

GBPAUD

Even as the pair managed to move back above 100-day SMA, it failed to conquer a short-term descending trend-line resistance and has now dropped back below 100-day SMA. The pair is currently trading near its immediate support near 2.1160-50 area, which if broken is likely to drag the pair back to sub-2.1100 level intermediate support. Below 2.1100 mark, the pair might continue drifting lower, initially towards 2.0900-2.0890 horizontal support before heading towards a descending trend-line support, currently near 2.0700 mark. Alternatively, a bounce from current support level now seems to confront immediate resistance at 100-day SMA region, currently near 2.1370 level. A sustained strength back above 100-day SMA is likely to extend the up-move but might be capped at the descending trend-line strong resistance, currently near 2.1530-40 area.

Follow me on twitter to discuss latest markets updates@Fx_Haresh