GBP/USD, GBP/JPY Levels to Watch Ahead of BoE
GBP/USD DAILY CHART – 55-EMA SUPPORT UNDER PRESSURE
The formation of a Shooting Star candle, followed by a Bearish Engulfing confirmation, suggests that GBP/USD rates could be at risk of further losses in the coming days.
However, with price continuing to track within an ascending Schiff Pitchfork, and the moving averages stacked in a bullish fashion, the path of least resistance seems higher.
Remaining constructively positioned above pitchfork parallel support and the 1.3800 handle probably opens the door for buyers to drive the exchange rate back towards the April high (1.4009), if 8-EMA resistance doesn’t stifle bullish momentum.
Alternatively, clearing the trend-defining 55-EMA (1.3816) and 1.3800 mark likely precipitates a move to test the 50% Fibonacci (1.3712).
GBP/JPY DAILY CHART – ASCENDING CHANNEL HINTS AT FURTHER GAINS
GBP/JPY rates, on the other hand, appear poised to continue gaining ground in the near term, as prices track within an Ascending Channel and above all six moving averages.
Indeed, with the RSI and MACD both tracking above their respective neutral midpoints, further gains look likely.
A daily close above 152.00 probably ignites a push to challenge the yearly high (153.41), with a convincing break above that bringing 153.85 into focus.
However, if sellers drive price back below the 8-EMA (150.96), a short-term pullback to the 55-EMA (149.40) and channel support may be at hand.
Reference by: Daniel Moss, Analyst for DailyFX
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