GBP-USD, EUR-JPY: Bullish Bias
GBP-USD
: With a firm clearance of the 1.6105 level, the upside risk is now seen towards the 1.6274, level, its Jan. 24, 2010 high.
A violation of there will pave the way for a run at the 1.6456 level, its Jan. 19, 2010. The data from the the daily studies of the pair are bullish and pointing higher supporting this view.
On the other hand, a close below the 1.5713 level will have to occur to annul its present bullish offensive and create scope for more weakness towards the 1.5502 level and subsequently the 1.5295 level, its Sept. 7, 2010 low.
All in all, GBP remains broadly biased to the upside in the medium term having resumed that trend.
EUR-JPY
: Bull pressure continues to unfold as the cross is now eyeing the 115.67 level, its Oct. 7, 2010 high.
This is coming on the back of recovery triggered from the 111.51 level. A clearance of the 115.67 level will resume its recovery started from the 105.41 level and extend further gains towards 119.63 level, its Feb. 25, 2010 high and possibly higher.
Alternatively, support comes in at the 114.77 level, representing its Oct. 14, 2010 high followed by the 113.92 level and the 112.45 level, its Sept. 25, 2010 low.
Further down, support comes in at the 111.51 level, its Sept. 28, 2010 low and then the 109.54 level, marking its Aug. 29, 2010 high.
All in all, with clear bullish momentum seen, a return above the 115.67 level and beyond is expected in the days ahead.
Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.
