The GBPUSD experienced a bearish European trading session on Thursday with prices trading over 60 pips to the downside. The pair is technically bearish on the daily timeframe as lower lows and lower highs have been consistently created. Some resistance may have been found below the daily 20 SMA and the MACD has also crossed to the downside, all in line with the bearish view on the GBPUSD. This bearish channel may provide Sterling bears with the ammunition to breach the 1.51 support, and a solid breakdown below 1.50 may further motivate traders to begin pricing an eventual decline towards 1.49.
The GBPJPY experienced a heavy 400 pips selloff from the 188.37 peak created on the 19th of November. This pair has breached the bullish channel which it once respected and has now become bearish on the daily timeframe. Prices are trading below the 20 and 200 SMA and the MACD is also in the process of crossing to the downside. A breakdown below the 184.50 support may encourage sellers to send prices lower towards the next relevant level at 182.50. For this bearish outlook to hold prices must keep below the daily trend defining level of 186.50.
The GBPCHF hit the target which was discussed in the previous report. This pair remains technically bullish on the daily timeframe as long as prices can keep above the new lower high at 1.5300. The MACD trades to the upside and prices are above the daily 20 and 200 SMA. The previous target of 1.5400 may act as a dynamic support which should invite an opportunity for prices to trade towards 1.5800.
The EURCAD trades closer to the target which was discussed in the previous report. Prices broke down below the previous 1.4200 support and have followed a smooth decline since then. This pair remains technically bearish and once a breakdown below the 1.4000 is achieved, an opportunity for prices to sink lower to 1.3800 may be available.
The EURAUD is heavily bearish on the daily timeframe as there have been consistent lower lows and lower highs. Prices have found a clear resistance below the daily 20 SMA and the MACD trades to the downside. A breakdown below the 1.4650 support may open a path to the next relevant support at 1.4400.
This pair is bearish on the daily timeframe and the bearish engulfment formation created on the 25th of November suggests that prices may attempt to breach the 0.6980 support. The lagging indicators such as the MACD and moving averages point to the downside and a daily close below the 0.6980 may open a path to the next relevant level at 0.6930.
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