Technical Update For GBP/USD, EUR/GBP, GBP/AUD & GBP/NZD: 19.04.2017

GBP/USD

Tuesday’s surprise announcement from UK PM, concerning an early general-election on June 08 to gain majority in parliament, triggered noticeable GBP strength. As a result the GBPUSD surpassed six-month high; however, the pair couldn’t clear 1.2860-75 horizontal-region and is presently witnessing pullbacks towards testing 1.2770-75 support. Given the pair stretch its profit-booking below 1.2770, the 1.2710 & 1.2650 may act as intermediate halts before the 200-day SMA figure of 1.2625 and the resistance-turned-support-line of 1.2610 come into play. During the quote’s further downside below 1.2610, also breaking 1.2600 round-figure, 1.2550 and 1.2510 should be watched carefully. If at all the pair manages to provide a closing break beyond 1.2875, it can quickly rise to 1.2910 and the 1.2940 prior to reigniting importance of the 1.3000 psychological-magnet. Should prices continue being dear to Bulls after breaking 1.3000, chances of witnessing an upward trajectory in direction to 1.3055-60 and 1.3120 can’t be denied.

EUR/GBP

EURGBP is another example that shows GBP’s rally is fading as the pair couldn’t drop below 0.8300 – 0.8290 horizontal-line during its Tuesday’s plunge. Presently, 0.8400 can become immediate resistance during the pair’s U-turn, breaking which 0.8465-70, 0.8510 and the 0.8530 might please short-term buyers. Given the pair’s further advances beyond 0.8530, the 0.8560 and the 200-day SMA level of 0.8595, adjacent to 0.8600 round-figure, could grab traders’ attention. Meanwhile, pair’s closing below 0.8290 could further strengthen Bears to flash 0.8240, 0.8210 and the 0.8175 on the chart. In case south continue being the pair’s favorite direction after breaking 0.8175, it seems wise to expect 0.8120 and the 0.8000 as following rests.

GBP/AUD

Unlike both the previous pairs, GBPAUD seems maintaining its upside which indicates the 1.7150 and 1.7170 as nearby resistances during additional advances before the 1.7210 horizontal-line grab investor’s attention. Should the pair manages to stretch its north-run beyond 1.7210, the 1.7255-60 and the 1.7300 can please buyers. Alternatively, the 1.7000 and the 1.6975 may offer immediate supports to the pair, breaking which 1.6925 and the 1.6830 can quickly re-appear. However, 1.6800 and the 200-day SMA figure of 1.6710 could act as strong supports when the quote keeps declining below 1.6830, which if cleared increases the importance of 1.6620 and the 1.6550 ascending trend-line mark.

GBP/NZD

While 1.8340-45 horizontal-line confined GBPNZD moves on Tuesday, the pair again heads to the same resistance but overbought RSI indicates its pullback to 1.8220 adjacent support. Given the pair clears 1.8220, 1.8180, 1.8120 and the 1.8070 are likely consecutives rests that can be availed by the quote ahead of 1.8000 and the 1.7940 gaining sellers’ attention. During the pair’s sustained downturn below 1.7940, the 1.7830-20 and the 1.7760 should be watched carefully. On the upside, 1.8390 and the 1.8460 become live opportunities for Bulls if 1.8345 is broke while pair’s successful trading above 1.8460 enables it to claim 1.8530 and the 1.8650-55 resistances.

Cheers and Safe Trading,
Anil Panchal