Make up yo mind, EUR/GBP! The pair’s been bouncin’ around like Happy Pip on a sugar rush, treating the .8450 handle as support, then as resistance, then as support again!
If you take a close look, you’ll notice that it lines up quite well with the 61.8% Fibonacci retracement level this time around. Seeing as it has respected this handle so many times in the past, the possibility of a bounce up to .8900 isn’t unlikely.
However, there’s always a chance that sellers may outnumber buyers to break support and push the pair back down to .8150.
And the rising channel holds! After consolidating at the bottom of the channel for almost two whole days, GBP/JPY bulls decided it was the right time to buy and push the pair higher again yesterday.
But how long will the rally last?? From the looks of it, the 135.00 psychological handle will serve as very strong resistance, as it coincides with the top of the channel.
The Stochastic also just hit overbought territory, hinting at a possible retracement.
Better jump in on this while you can! AUD/JPY has been rallying strongly and is now testing a six-month high. A convincing break of resistance and a candle close above 83.00 could mean it’s ultimately destined for new heights.
But Stochastic seems to be favoring a move down as it’s deep into overbought territory. If sellers take their cue from this, they may just force price back down to 81.30.