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Technical Outlook: EURGBP, GBPJPY, GBPCAD And GBPCHF

EURGBP

Although EURGBP's failure to clear the 0.7925-30 horizontal-line resistance dragged the pair to three week's low, it is still left to close below an upward slating trend-line support, also including the 100-day SMA, near 0.7770-60. Should the pair closes below 0.7760, it can quickly drop to 0.7665-60 prior to visiting the 50% Fibonacci Retracement of November 2015 – April 2016 upside, near 0.7550. Given the pair's sustained decline below 0.7550, the 0.7520 and the 0.7440 are likely consecutive supports that it could rest at. If the pair bounces back from the present levels, 0.7800 round figure mark can act as immediate resistance before visiting the 23.6% Fibo level of 0.7850, quickly followed by 0.7880 trend-line resistance. Moreover, pair's successful rise beyond 0.7880 again propels it to challenge the 0.7925-30 horizontal mark, which if broken enables it to test 0.8000 psychological magnet.

GBPJPY

Following its drop to near three years' low during April, the GBPJPY kept obeying a short-term ascending trend-line support, at 154.60 now, which presently propels the pair to confront six month old downward slanting trend-line around 159.00. If the pair manages to break the 159.00 on a closing basis, an instant run-up to 23.6% Fibonacci Retracement of November 2015 – April 2016 downside, at 160.40, can't be denied. However, 162.30-50 area, encompassing 100-day SMA and a horizontal-line, can limit the pair's further upside. Should the pair fails to clear the trend-line resistance and close around 158.00, the 156.90 and the 156.00, adjacent to 155.50 support, are likely following rest-points for the pair traders to observe before looking at the 154.60 support-line. Given the pair's continued south-run below 154.60, the 153.50 and the 152.60 may hold its intermediate pressure before fetching the prices to below April lows, around 151.00.

GBPCAD

Having breached short-term descending trend-line resistance, the GBPCAD now trades at the highest levels in over two-months; however, resistance-line of immediate ascending trend-channel, at 1.8925-30, might limit its further upside. Should the pair breaks above 1.8930, the 1.8990 and the 1.9090 are likely consecutive upside numbers it could mark prior to visiting the March month highs around 1.9160. Though, 100-day SMA level of 1.9250 can offer strong barrier for the pair if it surpasses the 1.9160 mark. Alternatively, the resistance-turned-support trend-line, around 1.8700, offer immediate rest point to the pair, breaking which 1.8600 and the channel support of 1.8560 may hold its downside captive. Given the pair's extended south-run below 1.8560, it can quickly drop 1.8400 round figure mark prior to aiming the 1.8280 and the 1.8200 support levels.

GBPCHF

GBPCHF's break of three month old trend-line resistance propelled the pair towards 1.4300 mark; however, a clear tick above 1.4350 becomes necessary for it to test 1.4430 and the 50% Fibonacci Retracement of November 2015 – April 2016 downside, around 1.4500. Though, 200-day SMA level of 1.4560 can offer a strong level to challenge the bulls, which if broken can extend the present northward trajectory towards 61.8% Fibo, around 1.4750. Meanwhile, pair's dip below 1.4180 can fetch the prices to 100-day SMA level of 1.4100, breaking which 1.4000 and the 1.3970 are expected downside numbers for the pair to mark. Further, 23.6% Fibo level of 1.3920 and the 1.3850 could become the pair's following supports if it fails to hold the 1.3970.

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Thursday, 19 May, 2016 / 6:41

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Source : http://www.mtrading.com/analytics/technical-analysis/technical-outlook-eurgbp-gbpjpy-gbpcad-and-gbpchf

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