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GBPUSD 4 HOUR CHART – Bounced but…
Bounce from 1.3310 helped by firmer crosses (e.g. vs EUR)
One change from yesterday is that deck is cleared of buy sop until the 1,3420 high.’
On the downside, key level is the 4 hour trendline (see chart)
This leaves GBP in sort of limbo if it stays between 1,33-1,34
Key focus in Fed speakers, Weekly jobless claims, US PCE tomorrow (typically would suggest a limited USD upside ahead of it).
EURGBP 4 HOUR CHART – BOUNCE FROM MULTI-YEAR LOW
If trading EURUSD and GBPUSD, it pays to keep an eye on EURGBP, which is firmer today… weighing on GBPUSD while EURUSD follows with a lag
This follows a bounce from ,8317, lowest level since early 2022.
Supports: .8339, .8317
Resistance: .8389 (this week’s high)
GBPISD MONTHLY CHART – New high
GBPUSD extended its high to 1.3383, highest level since early 2022.
With the next key level not until above 1.37, use the most recent high as the closest key resistance.
To dent the upward momentum, Monday’s low at 1.3248 would need to be broken.
Note, keep an eye on EURGBP (downtrend), and the tug-of-war between a lagging EURUSD and a firmer GBPUSD
GB[USD 4 HOUR CHART – Follows weaker EURUSD
GBPUsD dragged down by EURUSD as it follows with a lag (note weaker EURGBP).
Key support is at 1.3219 as we await the UK flash PMI
As note in Newsquawk Week Ahead September 23-27th
UK FLASH PMI (MON): Expectations are for September’s services PMI to decline to 53.5 from 53.7, manufacturing to hold steady at 52.5, leaving the composite at 53.5 vs. prev. 53.8. As a reminder, the prior report saw the services print rise to 53.7 from 52.5, and manufacturing rise to 52.5 from 52.1, leaving the composite comfortably in expansionary territory at 53.8 vs. prev. 52.8.
New week, new ball game!
Similar to last week, how the coming week ends will be more significant than how it starts out. In this regard, the dollar is ending on its back foot (except vs JPY) although only the GBP and AUD broke fresh ground to the upside.
Now, let’ take a look at key levels to watch in the week ahead.
Weekly FX Chart Outlook:- Sept 23-27
I posted 2 charts at the start of the week a an alert that something might be brewing in JPY crosses after USDJPY failed to hold the break below 140.
The two charts were GBPJPY and EURJPY, the former turning out to become the strongest move.
Whether it was some fund manager dipping his/her toes into a carry trade or just the move up in JPY exhausting itself, or a hidden hand stemming the tide below 140, you can see what has happened since.
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As for USDJPY, it would probably need to move above 145 to suggest anything more than a retracement.GBPJPY 4 HOUR CHART
EURJPY DAILY CHART
