GBP/USD poised for further potential breakdown

jamespq

By James Chen @JamesChenFX, chief of technical strategy at  City Index

 

GBP/USD (daily chart shown below) continues to be weighed down in the face of renewed US dollar strengthening against major global currencies, and appears to be poised for a further breakdown.

Currently nearing the one-year low of 1.5584 that was just established earlier in the week, GBP/USD is firmly entrenched within a strong downtrend that has been in place for more than four months since the 1.7190 multi-year high in mid-July.

The sharp drop since July, which represents more than a 9% decline down to this week’s noted 1.5584 one-year low, has consistently traded underneath a well-defined downtrend resistance line as well the 50-day moving average.

2014-12-04-GBPUSD-530x273

Having recently consolidated in a bearish flag pattern, the currency pair has since made a slight break below that pattern, tentatively confirming a continuation of the current downtrend.

Click here to read the full article on City Index.

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Supports & Resistances

EURGBP

Currently trying to chew through offers into 0.7910. What a difference a day makes eh?

Sellers 0.7900-10 (stops above) 0.7925-30 0.7950 0.7965 0.7985 0.8000

Buyers 0.7885 0.7870 0.7850 0.7820-25 0.7810 0.7800-0.7795 (stops below) 0.7780-85 0.7750

GBPUSD

Currently 1.5778 off Asian lows of 1.5759 protected by demand into 1.5700-50 target and capped by EURGBP demand

Sellers  1.5785-90 1.5800 1.5830 1.5850 (stops above) 1.5880 1.5900-10 1.5925 1.5950

Buyers   1.5760 1.5750 1.5725-35 1.5700-10 (stops below) 1.5685 1.5665 1.5650

EURUSD

Currently enjoying some love at 1.2460 but tempered by euro pairs finding some sell interest after good demand so far

Sellers  1.2475-85 1.2500-10 (stops above) 1.2525-30 1.2550-55 1.2580-85 1.2600

Buyers 1.2440 1.2425-35 1.2400 1.2385 1.2355-60 1.2350 (barrier option- stops below) 1.2325-35 1.2300

USDJPY

Currently 115.60 in retreat from the highs above 115.80 with 116.00-10 still providing good resistance, but there’s bids in the dips

Sellers  115.85-95 116.00-10 (stops above) 116.20 116.30 116.45-50

Buyers 115.40-50 115.20 115.00 114.85 114.65 114.50 114.25-30 114.00

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Supports & Resistances

AUDUSD

0.8614; capping at 0.8627 after rally from 0.8553

Sellers  0.8635 0.8650-60 0.8685 0.8700 0.8725-35 0.8750 

Buyers  0.8600 0.8575-85 0.8550-60 0.8525-30 0.8500

USDJPY

114.62; Nikkei-led drop in Asia from 115.52 .

Sellers  114.75-85 115.00 115.25-35 115.50-60 115.75-85 116.00

Buyers 114.40 114.20-25 114.00-10 113.75-85 113.50 113.20-25 113.00 112.75-85 112.50 

EURUSD

1.2500 after an early fall; ECB meeting later on

Sellers  1.2515 1.2525-30 1.2550-55 1.2585 1.2600 1.2620-25 1.2650-55 1.2670 1.2685 1.2700

Buyers  1.2480-85 1.2470 1.2440-50 1.2425 1.2400-10 (barrier 1.2400) 1.2385 1.2350

GBPUSD

1.5985 in a tight range; 1.5950 holding dips; BOE on the agenda. Sellers still above 1.6000

Sellers 1.6000-10 1.6025-30 1.6040-50 1.6065 1.6080-85 1.6100-10 1.6150-60

Buyers 1.5950 1.5920-30  1.5900 1.5885 1.5865 1.5850 1.5830 1.5800-10

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Supports & Resistances

divisas

EURUSD

Currently 1.2506

Sellers  1.2525-30 1.2545-50 1.2585 1.2600 1.2620-25 1.2650-55 1.2670 1.2685 1.2700

Buyers 1.2500 1.2480-85 1.2470 1.2440-50 1.2425 1.2400-10 (barrier at 1.2400) 1.2385 1.2350

GBPUSD

1.6000 going nowhere fast.

Sellers  1.6010 1.6025-30 1.6040-50 1.6065 1.6080-85 1.6100-10 1.6150-60 1.6180-85 1.6200-10

Buyers 1.5985 1.5960-70 1.5940-40 1.5925 1.5900-10 1.5885 1.5865 1.5850 1.5830 1.5800-10

USDJPY

113.63 after lows earlier of 113.28 and a subsequent rally above 113.70.

Sellers 113.80-85 114.00-10 114.25 114.50 114.85 115.00

Buyers 113.20-25 113.00 112.75-85 112.50 112.30-35 112.00 111.85  111.50

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Major currency pairs: orders

divisas

EURGBP

Currently 0.7811 hovering around good bids; PMI France 48.5 vs 47.3 exp; Italy: 49.0 vs 50.7 expected.

Sellers  0.7830-35 0.7850 0.7880-85 0.7900 

Buyers  0.7800-10 77.80-85 0.7750

USDJPY

Currently 112.80 looking underpinned still but having failed an Asian assault to breach 113.00

Sellers  113.00 (reported barrier option- stops above) 113.25 113.40-50 113.80-85 114.00

EURUSD

Currently 1.2490 unable to breach 1.2500 so far with final mftg PMIs looming

Sellers  1.2500-10 1.2525 1.2545-50 1.2585 1.2600 1.2620-25 1.2650-55 1.2670 1.2685 1.2700

Buyers  1.2470 1.2440-50 1.2425 1.2400-10 (barrier at 1.2400) 1.2385 1.2350

Buyers 112.50 112.30-35 112.00 111.85  111.50 111.30 111.00-10 110.75-80 110.55-60 

GBPUSD

Currently 1.5980 and steady into the start after the Asian wobble to 1.5926. Offers noted around 1.6000.

Sellers  1.6000-10 1.6025 1.6040-50 1.6065 1.6080-85 1.6100-10 1.6150-60 1.6180-85 1.6200-10

Buyers 1.5960 1.5940-40 1.5925 1.5900-10 1.5885 1.5865 1.5850 1.5830 1.5800-10

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