FOREX Tech Targets

GBP/USD: Neutral (since 11 Oct 17, 1.3205): Rebound has room to extend above 1.3340.

Expectation for GBP to extend lower to 1.3025/30 was proven wrong quickly as a better than expected UK GDP data resulted in sharp and swift rally (taking out the key short-term resistance at 1.3230 with an overnight high of 1.3271). Despite the strong gains, it is unlikely that the current movement is the start of a bullish phase. That said, there is room for the rebound to extend above 1.3335/40 but a clear break above 1.3400 is not expected for now. Overall, GBP is likely to stay underpinned in the next several days as long as the key support at 1.3170 is intact. On a shorter-term note, 1.3200 is already a strong support.

AUD/USD: Shift from neutral to BEARISH: Target a move to 0.7630

We highlighted yesterday that a NY closing below 0.7700 would shift the current neutral outlook to bearish. While the closing level is at 0.7704, it is enough to indicate that the current price action is the start of a fresh bearish phase. That said, the downside potential appears to be limited to 0.7630 for now. In order to maintain the current momentum, any short-term recovery should not move back above 0.7800.

NZD/USD: Bearish (since 19 Oct 17, 0.7030): Low odds for extension to 0.6820.

NZD touched a low 0.6861 yesterday, just one pip away from the ‘target’ highlighted at 0.6860 in recent updates. Downward momentum is starting to show sign of slowing and while a move below 0.6860 would not be surprising, the odds for further extension to the next support at 0.6820 are not high. That said, only a move back above 0.6955 would indicate that the current bearish phase has ended. In the meanwhile, NZD is still expected to stay on the back foot.

USD/JPY: Bullish (since 19 Oct 17, 112.95): 114.50 back in sight. No change in viewWe highlighted yesterday that “another push higher is not ruled but USD has to surmount 113.80 within these 1 to 2 days or the odds would diminish quickly”. USD closed at 113.89 in NY and from here, the 114.50 target is back in sight. That said, 114.50 is major resistance and it may not be easy to crack (at least the first time round). On the downside, 113.25 is a strong support ahead of  112.90.

Source:efxnews.com