GBP/USD – As you can see the from daily chart above. We are in a downtrend movement on GBP/USD. We’ve found good support in the area of1.372933 to 1.376455 witches carried us up to the inerdowntrend line of a high for the week of 1.392999. Over the course of Thursday evening and Friday, we failed to break past these highs and saw an interday from to the low of 1.37813 and picked up support there to touch to the inerdowntrend line once again. On Tuesday we have the Annual Budget Release and we have more news for GBP & USD over the course of the week. By the looks of it, we are in a downtrend towards the support of 1.36169.
If you take a look at the daily GBP/USD chart you may see overall we are in an uptrend. But you might notice we have to touch the ‘mean’ price before we see a continuation in this uptrend…
EUR/USD – Well as we can see from the chart below EUR/USD is once again in range territory. And just like GBP/USD we seem to hit the ‘mean’ price before a continuation to the tops. The levels that we have seen on EUR/USD on the 1st March. Have acted as good support for EUR/USD and imply a range trade over towards the mean price and then a break to the lower side to create a ‘buyers pool’ for another attempt at the highs.
USD/JPY – This is interesting. It’s finally broken out of the downtrend but hit resistance on of the main uptrend lines that you can see on the chart. I do suspect USD/JPY to push towards the 108 handle and even for 109 depending on how the USD data this week is presented. I do only see this being a retrace and not a “dollar strong story”. A key area that I’m keeping an eye on is the 107.866933 area. (red line on the chart below) If we break this it could imply the push to the 109.768 and could spark a sell-off on GBP/USD and EUR/USD.