Yahoo Finance GBP Tests Recent Supports as New Resistances
Most recently, GBPJPY broke all the major mid-term supports and went significantly lower. The drop had around 350 pips and was a great selling opportunity. Now, time for the reversal. The price is about to test the recent supports as the new resistances. Everything is happening in a flag pattern. A breakout of the lower line of this formation will be a sell signal.
Cable is locked inside the flag and between the horizontal resistance on the 1.34 and the horizontal support on the 1.33. Breakout of the lower one is more probable and can bring us a strong sell signal.
USDCHF is the pair, where we also have to wait for the breakout. Here, we do have a double bottom formation along with the flag pattern. Both of them are pointing north but before the buy signal will be triggered, we need to see the price closing above the green area.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
