Will The Pound Recovery Be Short-Lived?

• 14 Mar 2018

GBP/CHF

The GBP/CHF pair has broken the 1.313 resistance area with the next target at the 0.328 area. MACD has broken the zero line in support of the bullish move however, there are signs in price action (yesterday’s doji candle) and RSI that the momentum is slowing. Price action has also reached the 50 Fibo level and has struggled to push beyond this point which may be a signal of a bearish reversal to resume the previous downtrend.

GBP/JPY

The GBP/JPY pair has broken above the 20- period EMA and at the same time, MACD is currently undergoing a momentum reversal. RSI has a sharp upward trajectory to confirm bullish sentiment.

NZD/JPY

The NZD/JPY pair has broken the high price SMA to the upside and continues beyond the resistance line despite selling pressure. MACD has begun a momentum reversal and RSI has a strong upward trajectory.

Impact event: NZD GDP data will be released at 23:45 GMT+2 and will impact all NZD pairs.

AUD/CAD

The AUD/CAD pair has reached overbought conditions; with several breaks of the upper Bollinger band and RSI reaching the 70 resistance line. A bearish reversal may be imminent as signaled by the declining volume over the last week of trading.