GBPJPY

The GBPJPY is heavily bearish on the daily timeframe and has declined over 1000 pips from the start of 2016. While this pair clearly points to the downside technically, the fundamental driver behind the sharp decline in prices has been a combination of Sterling weakness and renewed appetite for safe haven assets such as the JPY. From a technical standpoint, prices are trading below both the 20 and 200 SMA while the MACD has crossed deep into the downside. As long as prices can keep below the previous 172.00 lower higher, there may be another decline back down towards 166.00 and potentially lower.

EURJPY

This pair remains bearish on the daily timeframe as long as prices can keep below the previous lower high at 129.00. Prices are currently trading below the daily 20 SMA while the MACD has also crossed to the downside. A breakdown below 127.50 may encourage sellers to send prices towards 126.00.

NZDUSD

The NZDUSD is bearish on the daily timeframe and has been since the breach below the daily 20 SMA. As long as prices can keep below 0.6600 there exists a likelihood that sellers may send prices back down towards the 0.6400 support level. A breakdown below 0.6400 may open a path to the next relevant support level based at 0.6250.

Dollar Index

The Dollar Index is bullish on the daily timeframe but momentum seems to be running out of steam. Prices are trading within an ascending triangle formation and a breakout above the 99.50 resistance should encourage buyer to send prices towards 100.50. 

Multiple time frame analysis (MTFA) - EURGBP

Monthly –

The monthly breakout above the 0.7500 resistance may signify the first steps to the end of the monthly downtrend which started back in 2008. A solid monthly close above 0.7500 may suggest a further appreciation to the next relevant monthly resistance based at 0.8050.

Weekly –

The weekly timeframe illustrates the same view as the monthly; the breakout above 0.7500 may have opened a path for a further incline towards the weekly pivotal level at 0.7800. Technical indicators such as the MACD and weekly 20 SMA also agree with this bullish view.

Daily –

This pair remains heavily bullish on the daily timeframe as there have been consistently higher highs and higher lows. Prices are trading in a daily bullish channel and the MACD has also crossed to the upside. Previous resistance at 0.7500 may become a dynamic support which should encourage sellers to send prices towards 0.7800.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.