Forex Update: Risk majors bouncing after support holds, GBPUSD focus
Hi traders, risk majors have fought back to the USD in today’s session continuing to reinforce previous support levels. We focus on the GBPUSD as price returned to previous breakout support and once again has started to push higher from it.
All three risk majors are moving higher from support today, the GBP and AUD are looking to snap losing streaks while the EUR is looking to back gains it set yesterday. All three are moving off range bottoms, the AUD sits in a higher low range as opposed to the EUR and GBP that remain in lower ranges. Support wise we see .7100 for the AUDUSD and 1.1235 for the EURUSD.
The Cable has set support at 1.3200, this is a solid level as it has held since late November. We’ve seen serval attempts by sellers to break the level and so far it’s been defended. Price moving into this level formed a descending wedge these patterns can be seen as reversal patterns and for a moment things looked like running to script. We saw a breakout but it stalled pulling back to retest support. Normally a move that runs past the breakout point can be a worry but with 1.3200 support continuing to support buyers for now this could still end up ok. We would want to see the new run hold momentum and continue to push higher. 1.3365 comes in as first resistance and 1.3490 looks to be a possible point of resistance above.
The above all rests on one factor, buyers maintain the current move and 1.3200 support remains in play. A break of that level cancels out the wedge and sets up a possible new push lower.