Important GBP Pairs’ Technical Overview: 22.09.2017

Fri, 22 Sep 2017 12:33


Except Wednesday, GBPUSD moves have largely been confined in a rectangle formation between 1.3620 & 1.3460. However, the UK PM's speech about details of Brexit might infuse volatility into the pair prices. Given the Theresa May's proposals fail to please global investors, the pair can quickly come down to 1.3500 and then to the 1.3460 while a break of 1.3460 could further weaken the quote towards testing 1.3400 and an upward slanting TL figure of 1.3345. Should the pair decline below 1.3345, the 1.3315 and the 1.3220 are likely rests that it can avail. On the contrary, a welcome announcement from May could help the pair to clear the 1.3620 resistance and challenge the recent high around 1.3655-60. Moreover, pair's additional up-move above 1.3660 can aim for 1.3700 and the 61.8% FE level of 1.3765.


With the 1.7100–1.7110 again playing its role to restrict GBPAUD's advances, the pair is likely to witness pullbacks in direction to 1.6910 and the 1.6870 ahead of visiting the 100-day SMA level of 1.6775. During the pair's extended south-run beneath 1.6775, the 1.6700 and the 1.6610 could please sellers. Meanwhile, a daily closing above 1.7110 enables the pair to confront the 1.7170 and the 1.7250 resistances, breaking which it can rise to 1.7330 and the 1.7400. If at all Bulls keep dominating the sentiment after 1.7400, it seems wise to expect 1.7500, the 1.7570 and the 1.7650 numbers to appear on the chart.


GBPNZD's failure to surpass 1.8655-60 horizontal-line presently indicates chances of its profit-booking towards 1.8420 and then to the immediate upward slanting TL figure of 1.8380. In case of the pair's break of 1.8420, the 1.8320–1.8300 horizontal-region can limit following downside, breaking which another ascending trend-line, near 1.8170-65, gains importance. Alternatively, an upside break of 1.8600 could again propel the pair to challenge the 1.8655-60, which if conquered enable it to target 1.8740 and then the 61.8% FE level of 1.8835. Given the buyers' ability to portray a 1.8835 break, they can then look for 1.9000 round-figure mark.

Cheers and Safe Trading,
Anil Panchal