Why the Buck may restore traders’ confidence this week
Forex Market Movers: Weekly Technical Outlook
The GBP/USD rolled over last week, dropping back below key previous-resistance-turned-support at 1.7050. The pair’s overall technical uptrend remains intact, though rates may still dip toward bullish trend line support around 1.6900 early this week. The MACD shows that the near-term momentum remains to the downside, but the Slow Stochastics bolster the case for a bounce or bottom forming off 1.6900 support. Moving forward, bulls would like to see the pair reestablish itself back above 1.7050 this week to ensure that the uptrend remains healthy.
The USD/JPY inched higher in lackluster trade last week. But, as we noted on Wednesday, the recent consolidation may be reaching a breaking point relatively soon. At this point, predicting a breakout in either direction may be a fool’s errand, but the pair’s MACD is starting to turn to the topside for the first time in weeks. Heading into this week, traders will watch for a confirmed break above 102.00 to shift the medium-term bias in favor of the bulls, while a break of the 100.75-101.00 support zone would create a bearish breakdown.