Technical Overview: Important GBP Pairs

GBPCAD

Having breached its 100-day SMA and 38.2% Fibonacci Retracement of April – August advance, near 1.9920 – 1.9900 area, the 1.9780-70 support-zone, coupled with oversold RSI, seems forcing the GBPCAD to trade in a consolidation phase ahead of BoE and Canadian labor market details, scheduled for release on Thursday and Friday respectively. However, with recent strength in CAD, coupled with not so good UK numbers, chances are higher that the pair could break its 1.9770 support and plunge towards the 50% Fibo, near 1.9550, also marked as February high. Should the pair extends the downward trajectory below 1.9550, chances of its decline to 1.9350 and 61.8% Fibo, near 1.9200 round figure mark can’t be denied. Meanwhile, a hawkish BoE and weaker Canadian numbers can make the pair surpass 1.9920, opening room for 2.0080 immediate resistance, breaking which 23.6% Fibo, near 2.0300 can restrict the pair’s further advance. Moreover, on a sustained trading above 2.0300, the pair becomes capable enough to target 2.0500 resistance region.

GBPNZD

Following its confirmation of “Rising-Wedge” bearish technical formation, the GBPNZD prices run down towards the lowest level in more than two months; however, 100-day SMA, near 2.3240, seems currently acting as strong immediate support to limit the pair’s further decline; though, 2.3500 round figure mark may provide near-term cap to the pair prices. Given the pair’s ability to close below 2.3240, it can quickly plunge to 2.2900 mark, encompassing 38.2% Fibo. of its January – August advance, breaking which 2.2670-60 may provide an intermediate rest to the pair’s downside prior to testing 50% Fibo, near 2.2200 psychological level. On the upside break of 2.3500, the 2.3580 and the 2.3760, as indicating 23.6% Fibo, are likely consecutive levels that the pair could witness during its successive advance. Further, an extension of uptrend surpassing 2.3760 can make the pair capable enough to surpass 2.4000 mark.

GBPAUD

Break of 2.1400 horizontal mark seems forcing the GBPAUD towards 2.1225-15 immediate downside support, breaking which 2.1080, encompassing 38.2% Fibo of its May – August rally, and the 50-day SMA, near 2.0950, are likely consecutive rests that the pair could avail prior to testing 2.0850 and the 50% Fibo, near 2.0675 downside levels. Alternatively, an upside break and close above 2.1400 negates the recent trigger to decline and can pull the pair back to 23.6% Fibo, near 2.1580. On an extended advance beyond 2.1580, the 2.1750 and 2.1850 can act as intermediate resistances before the pair could rally to 2.2100 important horizontal resistance. Moreover, an aggressive break of 2.2100 can quickly fuel the pair toward August highs, near 2.2400 psychological level.

GBPJPY

Even if the GBPJPY managed to break 185.30 – 185.00 horizontal support area, including 200-day SMA and 38.2% Fibo of its October 2014 – June 2015 advance, a year old ascending trend-channel support seems restricting the pair’s immediate downside near 181.00 round figure mark while 50% Fibo, near 182.00, is likely providing quick support to the pair. If the pair manages to break 181.00 on a closing basis, chances of its decline to 180.00 psychological magnet and 178.50, as indicated by 61.8% Fibo, gets stronger. On an extended decline below 178.50, the pair becomes vulnerable to test 175.70 – 175.50 horizontal support area. However, strength of the ascending trend-channel signals the pair’s bounce towards 184.00 resistance prior to re-testing 185.30 – 185.00 important support-turned-resistance area. Moreover, a daily close above 185.30 can trigger the pair’s rally to 187.35-50 resistance region before targeting 23.6% Fibo, near 189.00 round figure mark.

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