Technical Outlook For GBP/USD, EUR/GBP, GBP/JPY & GBP/AUD: 08.06.2017

GBP/USD

Ever since the GBPUSD reversed from 1.2760-70 horizontal-line, the pair kept trading northwards and is presently trading at two-week high on the day when UK election will decide the fate of Theresa May government. Given the Conservatives’ clear majority, which is more likely, the pair can quickly rise to 1.3045-55 region, breaking which it becomes capable to claim 1.3120 and the 1.3175 resistance-levels. Moreover, pair’s sustained trading beyond 1.3175 can flash 1.3280 on the chart. Alternatively, May’s victory with minority seats at House of parliament or her defeat could trigger the Cable’s fresh south-run towards 1.2880, 1.2840 and then to the 50-day SMA level around 1.2800. However, 1.2760-70 may try to restrict the pair’s following declines after 1.2800 break, failing to which can strengthen the Bears to demand 1.2730 and the 1.2700 support-mark.

EUR/GBP

Even after failing to sustain four-month old descending trend-line break, the EURGBP can’t be termed weak unless it closes below 0.8670, which in-turn could open doors for extended downturn aiming the 0.8640, 0.8610 and then to the 200-day SMA level around 0.8600. In case if the quote keeps trading southwards after 0.8600, the 0.8570 and the 0.8530 could please sellers. Meanwhile, pair’s reversal from the TL with a closing above 0.8700 confirms Breakout-Pullback-Continuation (BPC) pattern and may help Bulls to target 0.8740 and the 0.8770 resistances. During the pair’s successful trading above 0.8770, chances of witnessing the 0.8800 and the 0.8850 can’t be denied.

GBP/JPY

With a month-old descending trend-channel likely to restrict GBPJPY’s near-term advances, the 143.00 becomes an important level for traders to watch, clearing which the pair can rise to 143.70 and the 144.50. Should prices manage to confront 144.50, the 145.40 and the 145.80 are expected buffers that need to be passed prior to looking for 147.00 and the December 2016 high around 148.50. In case if the channel formation remains intact, 100-day SMA level of 141.40 and the 140.65 may entertain sellers while channel-support, near 140.00 psychological magnet, could confine the pair’s following downside. If at all Bears dominate momentum after 140.00, the 138.80 support-confluence, comprising 200-day SMA & eight-month old ascending trend-line, seems a crucial level to observe.

GBP/AUD

Alike GBPJPY, the GBPAUD also follows a descending trend-channel formation, though on a shorter time-frame, and is likely to witness a pullback towards 1.7100 support-mark. However, the pair’s additional decline below 1.7100 may find it difficult to clear 1.7065-70 horizontal-line, breaking which 1.7000 and the channel-support of 1.6980 can come-back on the chart. During the pair’s further downside below 1.6980, the 1.6950 and the 1.6870 might come into sellers’ radar. On the upside, channel-resistance mark of 1.7180 may limit the pair’s immediate advances, breaking which it could aim for 1.7270 & the 1.7300 north-side numbers. Given the pair’s sustained up-moves after 1.7300 break, it becomes wise to expect 1.7330 and the 1.7380 as quotes.

Cheers and Safe Trading,
Anil Panchal