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GBPUSD 4 HOUR CHART
GBPUSD bounce off its 1.2574 low is so far just a retracement. To suggest a low is in, 1.2675 would need to be taken out, Currently, resistance at 1.2524 is being tested but this is only a minor level.
Note, EURGBP has backed off from .8600 and this has eased some of the selling pressure on GBPUSD.
USDCHF Analysis: Consolidation and Support Levels
USDCHF has maintained its position above the ascending trend line on the 4-hour chart, indicating that the pair is still in an uptrend starting from 0.8729. The upward movement from 0.8729 has reached as high as 0.9019.
The subsequent retracement from 0.9019 suggests that the pair is currently undergoing a period of consolidation for the uptrend. It is expected that the pair will trade within the range of 0.8900 and 0.9019 in the coming days.
If the support level of 0.8900 remains unbroken, the bullish trend could be expected to resume, with a breakout above the 0.9019 resistance level potentially triggering another upward movement towards 0.9100 and 0.9180.
On the downside, a breakdown below the 0.8900 support level could indicate that a longer period of consolidation for the uptrend starting from 0.8729 is necessary. In this scenario, the pair would likely find support at the rising trend line on the 4-hour chart.
It is important to note that only a decisive break below the trend line support would suggest the potential completion of the current uptrend.
USDJPY 4 HOUR CHART – CONSOLIDATION?
With Goldman raising its 3-month USDJPY forecast (see prior post), let’s take a look at a 4-hour USDJPY chart.
With 151.90 remaining the major resistance (shown on a daily chart), currently protected by 1.5181-86, the current range is consolidating between 150/152, with 151 acting as a neutral midpoint.
The key support is at 150.26. above it keeps 151.90 in play, a stronger risk if 151.00 can become support.
The reason that I looked at the range as consolidation is that the upcoming week is not a normal one
Pre-Easter week and a 4-day long weekend break
A week normally dominated by position adjustment rather than aggressive positioning
Light economic calendar, highlight Friday’s US PCE report
Month/quarter end for many on Thursday with markets closed on Friday-Monday
The actual quarter end is Friday
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