By Mexgroup.com

GBP/USD Minor Retreat Favored

The currency pair has dropped sharply on Thursday, but now is fighting hard to recover and to stay higher on the daily chart. Is trading in the green and tries to retest some important resistance levels, a rejection will announce another minor decrease. GBP/USD is moving sideways on the short term, but remains to see if this will be an accumulation or a distribution movement.

I want to remind you that the perspective remains bullish despite a minor decrease, could come down only if the USDX will jump higher on the short term. The dollar index move in range on the short term as well, but a valid breakout above the 92.49 static resistance will open the door for more buyers.

Technically, the USDX is still trapped under some very important resistance levels, so is premature to say that we’ll have a reversal.

Price failed to stay above the 150% Fibonacci line (ascending dotted line)  and could drop in the upcoming days. Has increased today and tries to retest the 150% line, actually, it could be attracted by the confluence area formed between the 150% Fibonacci line with the upper median line (uml) of the minor red descending pitchfork.

GBP/USD could come down to retest the warning line (wl1) of the ascending pitchfork. A rejection from the confluence area will bring more sellers in the game, while a valid breakout will accelerate the upside movement.

EUR/GBP Downside Prevails

The EUR/GBP failed to stabilize above the 100% Fibonacci level and above the short uptrend line (dotted line) and now it seems motivated to drop much deeper in the upcoming days. The next downside target will be at the lower median line (LML) of the major ascending pitchfork.

Price failed to reach and retest the median line (ML) and the third warning line (wl3) of the descending pitchfork, signaling a further drop.

EUR/CHF Breakout Or Fake Out?

The EUR/CHF opened with a huge gap down in the morning, but now is trying to close it. Price is trading in the green and struggles to stay in the green territory. You can see that has failed to stay above the third warning line (WL3) of the blue ascending pitchfork. Has found temporary support at the first warning line (wl1) of the minor ascending pitchfork. A valid breakdown below the WL5 and below the wl1 will confirm a corrective phase.

By Olimpiu Tuns

Market Analyst

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