Important GBP Pairs: Technical Checks
Eleven month high of UK Manufacturing PMI triggered GBP's across the board rally during mid-Thursday. The GBPUSD, not being an exception, also cleared downward slanting trend-line stretched since June-end, indicating further up-moves toward 1.3280 and 1.3365-70 nearby resistances. Given the pair manage to extend its recent north-run beyond 1.3370, the 1.3415 and 1.3480 are likely intermediate halts that it could avail before challenging the 1.3535-40 resistance-zone. On the downside, a dip below 1.3230 TL resistance-turned-support can again drag the pair to 1.3200 and the 50% Fibonacci Retracement level of its late-June to early July dip, at 1.3165. However, a short-term ascending trend-line support of 1.3090 might give rise to the pair's reversal, which if not respected can print 1.3060, 1.3030 and the 1.3000 psychological magnet on the chart.
EURGBP
Unlike GBPUSD, the EURGBP presently struggles around the 0.8400 – 0.8390 support confluence, comprising lower-line of short-term descending trend-channel and upward slanting TL connecting lows marked during end of June and July sessions. Though, oversold RSI levels favor the pair's bounce towards 0.8430 and the 0.8470 nearby resistances, breaking which 0.8505 and the channel resistance mark of 0.8535 are likely important numbers to watch for the pair traders. In case the pair surpasses 0.8535, the 0.8565 and the 0.8580 can pose as minor resistances that should be broken before expecting 0.8600 round figure. Alternatively, pair's break of 0.8390 can quickly flash 0.8350-45 and the 0.8310 supports, breaking which it could re-test mid-July lows of 0.8250. Should the pair continue declining below 0.8250, the 0.8200 – 0.8195 crucial support-region comes into play, which if broken can trigger its downside to 0.7980 support mark.
GBPJPY
Among other GBP pairs, the GBPJPY seems more promising when it comes to flaunt the UK currency's strength. The pair sustained its break above immediate TL resistance and 50-day SMA, indicating further run-up to 138.30 and 139.85 resistances. During its further advances beyond 139.85, the 141.30 and the 38.2% Fibonacci Retracement of its May – July dip, near 142.00, are likely consecutive upside numbers to witness. However, pair's closing below 135.70 TL mark, also confirmed with a break of 135.00, including 50-day SMA, could negate its recent strength and may ignite chances of 133.70 re-test. Should the pair extend its south-run below 133.70, the 132.00 and the 130.80 can act as buffer supports prior to revisiting the July lows around 128.70.
GBPAUD
With a sustained break of two-month old descending trend-line and 50-day SMA, GBPAUD seems all set to test the 23.6% Fibonacci Retracement of its May – August decline, at 1.7620; though, a broader downward slanting TL mark of 1.7730, becomes a tough nut for the pair to crack and might trigger its pullback. If the pair surpasses 1.7730, the 1.7930 and the 38.2% Fibo level of 1.8170 are likely following upside numbers to watch before we can look for 100-day SMA level of 1.8450. Meanwhile, pair's close below 50-day SMA level of 1.7395 can reprint 1.7250 and the 1.7090 supports before showing 1.7000 psychological magnet. In case of the pair's additional weakness below 1.7000, the 1.6920 might offer intermediate rest before showing August lows of 1.6720.
Cheers and Safe Trading,
Anil Panchal