GBP/USD Daily: Reached Parity at 1.46
Suggested positioning: Short position below 1.4835 with targets at 1.44 and 1.42 in extension
Technical reasons why: Unable to break above the Ichimoku cloud, the pair hit a 5 year low on Monday which could be the start of more drops to the lows of 2010 at 1.44 and 1.42.
Alternative Scenario: Above 23% Fibonacci level of 1.4835 look for up moves towards 50% Fibonacci at 1.5073.
Where I’m setting my stops and limits:
| Support Levels | Turning Point | Resistance Levels |
|---|---|---|
| 1.44 | 1.4835 | 1.5073 |
| 1.42 | 1.5180 |
USD/JPY Daily: Ranging between 121 and 116
Suggested positioning: Short position below 119 with 116 as a range target
Technical reasons why: The pair has been ranging between the key support and resistance levels with all 5 Ichimoku Kinko Hyo moving averages flattening. Unless we have a shock coming out of Bank of Japan, we should be able to range trade the pair aiming smaller pips.
Alternative Scenario: Above 119 go long with 121 as target
Where I’m setting my stops and limits:
| Support Levels | Turning Point | Resistance Levels |
|---|---|---|
| 116 | 119 | 121 |
