July 22nd – 26th
GBPJPY – Smooth deviation from the 135.430 zone on this exchange rate. After price tapping into ….. and accumulating all the orders and then pull-back with sterling attempting to re-gain strength against the japanese yen. Now 134.840 is a very significant level for this exchange rate – hence why market participants have been keen on keeping the exchange rate below this zone. 134.840 is the only zone that holds the exchange rate from re-testing the 135.430 – the same zone in which price deviated from last week. As long has price can hold below the 134.840 zone, we expect a decline on this exchange rate to re-visit the 133.962 zone which is the previous lows.
EURUSD – Interesting instrument here, especially given the significant period of long term consolidation from the weekly perspective. The weekly price action behaviour has been unprecedeted, however let’s assess the daily view. $1.12030 has proven to be a significant demand barrier for this instrument, given the sharp bounces from this zone on around 4 separate occasions. Now price has been more aggressive with the attempts to break below $1.12030 as oppose to $1.13173. With this being said, we expect a break below this zone to re-visit the $1.11307 zone.
GBPUSD – Market participants battle as the exchange rate bounces around from $1.25570 – $1.23878 – which is clearly viewable from the daily perspective. $1.25655 has proven to be quite a significant area for this exchange rate as market participants has recently sold their sterling at this zone. Market flow is always dynamic each day , however the second sharp rejection from $1.25655 suggests that this region is a huge supply area for sterling. In technical terms, we’ve witnessed a smooth lower swing high triggered in. We expect a further decline on this exchange rate to at-least re-visit previous lows at $1.23878 and potentially even break this zone to trigger in new lows.
July 15th – 19th
GBPUSD – Cable’s exchange rate was in a state of flux throughout last week – we witnessed price trigger in a new monthly low (bouncing from the $1.24415 region) and pulling back to trigger in a lower swing high. The interesting fact about the movement of this exchange rate throughout last week is exactly where price re-visited – which was $1.25784 – which is a very significant supply barrier for this exchange rate. USD demand expected throughout the beginning of the week, $1.24415 demand barrier is expected to be re-visited.
GBPJPY – Significant amount of consolidation on the sterling/yen exchange rate as of now – especially viewing this instrument from the daily perspective. Price has been ranging from 135.974 – 135.432 zones for approximately 9 days. Given the various area’s of technical confluence. yen strength is expected throughout today to reach new lows on this exchange rate.
USDCAD – Interesting week on this exchange rate last week – especially given the economic news that had a huge effect on the fluctuation of this exchange rate from Bank of Canada. Price has plummeted for the last few days – however, if we actually view this instrument from the daily perspective, it is still in a state of longer term indecision from 1.30253 – 1.31358. A bullish pull-back is expected on this instrument t0 actually re-visit 1.31358 which goes hand in hand with re-visiting the dynamic area of resistance.
July 8th – 12th
July 1st – 5th
GBPAUD – 1.81449 is a VERY significant demand zone for this exchange rate as we can easily assess market participant behaviour as price approached this zone previously.
We were in sterling long positions throughout the beginning of Friday’s session – furthermore we still expect a further move upwards on this exchange rate to re-visit the 1.83269 supply barrier – which is a 80+ PIP move north from the prevailing exchange rate quotation.