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OUTLOOK: Price Signal Summary - GBPUSD Trend Needle Continues To Point South

OUTLOOK
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  • In FX, EURUSD remains intact, however, Friday’s price pattern - a hammer candle - highlights a possible short-term base and if correct, the start of a corrective cycle. The pair is oversold and a recovery would allow this condition to unwind. Firm resistance to watch is 1.0638, the 20-day EMA. For bears, a move through Friday’s 1.0335 low would resume the downtrend and open 1.0311, the 1.382 projection of the Sep 25 - Oct 23 - Nov 5 price swing.
  • A downtrend in GBPUSD remains intact and last week’s move lower confirms a resumption of the trend. Note that moving average studies are in a bear-mode set-up, highlighting a dominant downtrend. Sights are on 1.2446, the May 9 low. Initial firm resistance to watch is at 1.2757 the 20-day EMA. A short-term bounce would be considered corrective and allow an oversold condition to unwind.
  • The USDJPY trend condition is unchanged, it remains bullish and the latest short-term pullback is considered corrective. Support to watch is the 20-day EMA, at 153.70. It has been pierced, a clear break of it would signal scope for a deeper short-term corrective pullback and open 151.50, the 50-day EMA. Moving average studies are in a bull-mode position highlighting a dominant uptrend and sights are on 156.88 next, a 2.236 projection of the Sep 16 - 27 - 30 price swing.
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  • In FX, EURUSD remains intact, however, Friday’s price pattern - a hammer candle - highlights a possible short-term base and if correct, the start of a corrective cycle. The pair is oversold and a recovery would allow this condition to unwind. Firm resistance to watch is 1.0638, the 20-day EMA. For bears, a move through Friday’s 1.0335 low would resume the downtrend and open 1.0311, the 1.382 projection of the Sep 25 - Oct 23 - Nov 5 price swing.
  • A downtrend in GBPUSD remains intact and last week’s move lower confirms a resumption of the trend. Note that moving average studies are in a bear-mode set-up, highlighting a dominant downtrend. Sights are on 1.2446, the May 9 low. Initial firm resistance to watch is at 1.2757 the 20-day EMA. A short-term bounce would be considered corrective and allow an oversold condition to unwind.
  • The USDJPY trend condition is unchanged, it remains bullish and the latest short-term pullback is considered corrective. Support to watch is the 20-day EMA, at 153.70. It has been pierced, a clear break of it would signal scope for a deeper short-term corrective pullback and open 151.50, the 50-day EMA. Moving average studies are in a bull-mode position highlighting a dominant uptrend and sights are on 156.88 next, a 2.236 projection of the Sep 16 - 27 - 30 price swing.