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Price Signal Summary - Pullback In GBPUSD Appears To Be A Correction

OUTLOOK
  • In FX, a bullish theme in EURUSD remains intact and this week’s pullback appears to be a shallow correction. The recent breach of key short-term resistance at 1.0694, the Oct 24 high, strengthens a bullish case and signals scope for a stronger short-term correction. This has opened 1.0764, a Fibonacci retracement. Firm support is at 1.0517, the Nov 1 low, a break would be bearish. Initial support is 1.0659, the 50-day EMA.
  • Despite this week’s move lower, a short-term bull cycle in GBPUSD remains in play. The rally on Nov 3 reinforced a bullish theme - a candlestick pattern known as a standard line was confirmed at the close. This is a bullish continuation signal. The move higher suggests scope for a climb towards the 200-dma at 1.2435 and 1.2459, 38.2% of the Jul 13 - Oct 4 bear leg. The next support to watch lies at 1.2185, the Nov 3 low.
  • The USDJPY trend outlook remains bullish and the pair is holding on to this week's gains. Key short-term support lies at the 50-day EMA - at 148.74. A break of this average is required to signal a short-term top. The recent breach of 150.78, the Oct 26 high, confirmed a resumption of the uptrend and has opened 152.20, the 3.00 projection of the Jul 14 - 21 - 28 price swing. Moving average studies are in a bull-mode position, reflecting the market's positive sentiment.
Foreign Exchange Technical AnalysisHomepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets
Foreign Exchange Technical AnalysisHomepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets

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