GBP/JPY

dtu_051110_gbpjpyfollowa

  

  • GBP/JPY: Following up with this morning's bearish anticipation of GBP/JPY, we saw a break above 1.3740, which gives the initial bearish outlook trouble. Indeed, the market is finding strength fo the Sterling. Perhaps some resolution is in the air for UK's hung parliament.
  • Looking at the 1H and 4H time-frame, we saw many signs during the early part of the US session showing strength in the GBP. The in the RSI held in the 1H, and provided support also in the 4H chart.
  • Now in the 1H chart, the RSI is testing 60.
  • Price action suggests we may see a retest of 140.45. A break above 140.45 with a swing projection goes to 144. However, we see that there maybe resistance earlier, near the 78.6% retracement level (142.35) seen in the 4H chart. This is a previous support zone, and may provide resistance at least temporarily.

GBP/USD

dtu_051110_gbpusdfollow

  • The GBP/USD is also rallying on Pound-strength. RSI has a similar setup as the GBP/JPY's.
  • A swing projection goes to 1.52, but resistance can be found near 1.51. 1.51 is 61.8% retracement, SMA 200 in 4H, and a former support that may now provide resistance.
  • The GBP/USD is still bearish in the intermediate and long-term, although it is seeing a short term bullish attempt extend.

Fan Yang  Currency Analyst Commodity Trading Advisor