Technical Update – EURGBP, GBPCAD, GBPJPY and GBPNZD

EURGBP

The pair’s recovery momentum from a descending trend-line support, marking the lower descending trend-line of a possible falling wedge chart-pattern, failed to lift the pair beyond another descending trend-line resistance also constituting towards formation of the bullish reversal pattern. Reversal from the upper trend-line resistance of the pattern dragged the pair back below 0.7000 mark thus making it vulnerable to continue drifting lower in the near-term towards retesting the lower trend-line support of the wedge, currently near 0.6880-75 area, also coinciding with 61.8% Fib. expansion level. On the upside, 0.7000 round figure mark, closely followed by a 0.7030-40 horizontal area, might now act as immediate resistance. A move above 0.7030-40 resistance might lift the pair back towards the upper trend-line resistance of the wedge, currently near 0.7090-0.7100 area. Should the pair manage to conquer and decisively break through 0.7100 resistance, thus confirming the bullish falling wedge chart-pattern, the pair could immediately aim towards 0.7210-20 horizontal resistance, which could further get extended towards its next major resistance near 0.7350-60 area.

GBPCAD

Extending its strong upward trajectory, as depicted by the formation of an ascending trend-channel on daily chart, the pair on Wednesday scaled to a fresh 2015 highs and also marking its highest level since Oct. 2008. From current level, the pair seems more likely to continue climbing higher towards testing the upper trend-line resistance of the ascending channel, currently near 2.0700-20 area. Alternatively, should the pair start witnessing some profit taking moves at higher level and drop back below 2.0550 level, previous resistance now turned immediate support, it seems to extend the corrective move immediately towards testing its next support near 2.0400-2.0380 horizontal area. Further, decisive weakness below 2.0400 area might now trigger additional pull-back towards testing a very important support near 2.0120-100 area, marking the lower trend-line support of the ascending channel.

GBPJPY

In the near-term the pair seems to have moved within a short-term trading range with immediate resistance near 194.50 and 193.00 as immediate support on the downside. On a clear break thorough on the up-side of the trading range, the pair seems more likely to make a fresh attempt to retest its multi-year daily closing high resistance level near 195.50 region, earlier tested in the month of June. Further, sustained strength above 195.50 level now seems to open room for continuing the pair’s near-term upward trajectory towards testing 61.8% Fib. expansion level resistance near 198.40-50 zone. Alternatively, a break-down on the downside, i.e. below 193.00 mark, is likely to get extended the weakness towards 191.00 support area, marking 23.6% Fib. retracement level, which now seems to act as a strong support on the downside. However, a decisive break and close below 191.00 mark might now negate the near-term bullish expectations, thus increasing the pair’s vulnerability to continue drifting lower towards testing its next major support near 188.00-187.80 support area, representing 38.2% Fib. retracement level.

GBPNZD

Bounce from a short-term ascending trend-line support helped the pair to move back above 61.8% Fib. expansion level intermediate resistance near 2.3750-70 area. Moreover, the pair also seems to have moved within a short-term ascending trend-channel, thus increasing the prospects of darting back towards 2.4000 mark and extend the up-move towards its the upper trend-line of the ascending channel, currently near 2.4100 level. Moreover, a clear strength above 2.4000 would enhance the possibilities of aiming towards the pair next major resistance near 2.4350-70 area, representing 100% Fib. expansion level. Meanwhile, a drop below 2.3770-50 immediate support, also nearing the lower trend-line support of the short-term ascending channel, might initially drag the pair back towards 2.3560-50 intermediate horizontal support and eventually weaken it towards retesting the short-term ascending trend-line support near 2.3350-40 zone.

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