GBP/USD:

Last, week the sterling’s power was determined by the unstable position of PM Theresa May and the twofold position of the Bank of England which both affected the dynamics of the GBP/USD pair. However, during the last days of the week the pair was growing and in fact crossed the strong psychological level of 1.2700 and is now trading below the upper border of the blue channel on D1.

Support and resistance

Resistance levels: 1.2780, 1.2865, 1.2990, 1.3040.

Support levels: 1.2700, 1.2610, 1.2510.

USD/JPY

The Japanese yen has been trading in the channel with the upper level of 111.71 or 3/8 Murrey and the lower of 110.93 or 2/8 Murrey for several days. The dollar was under pressure after the data release of industrial PMI which was reduced by 0.6 points. In general, the dollar looks more attractive to buyers than yen and therefore, traders may open longer positions after the upper level of 111.71 is broken through.

Support and resistance

Support levels: 110.93.

Resistance levels: 111.71.

Source: Claws & Horns

This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice