GBP/JPY Is Still Falling

After GBP/JPY reached the resistance at 131.06 that coincides with the (MA)89 indicator on the one-hour time-frame and formed a shooting star candlestick under it on the same time-frame the pair continued its overall move to the downside that started at the beginning of September. The pair just broke below the support at 130.30 and is testing the one at 130.06, but it will likely break out below that level as well. If it does it’s almost certain that the move to the downside will continue until the pair reaches the previous low at 129.62 and if the shooting star candlestick that has also formed on the four-hour time-frame is any indication the drop will continue below that level as well.

EUR/GBP Continues Rising

The EUR/GBP pair continued moving to the upside and today it broke above 0.8700 again. The pair is clearly trying to test the previous high at 0.8724 and depending on whether it succeeds or not it will become clear how it will develop for the foreseeable future. A bounce off that level will form a clear double top, which would be a signal for a new impending move to the downside, likely towards the previous low at 0.8332. If the pair does succeed in breaking above the previous high at 0.8724, however, we can probably expect a further move to the upside towards the previous high at 0.8814.

GBP/CAD Continues Falling

Last week GBP/CAD made one more attempt to break above the resistance at 1.7525 which was unsuccessful and then formed a very clear shooting star candlestick on the weekly time-frame. Combined with the hanging man candlestick that preceded it on the same time frame that was a good signal that the pair would start moving to the downside, which it did. GBP/CAD just broke below the support at 1.6980 despite spinning top candlestick that had formed on the daily time-frame above that level. The move to the downside clearly continues and its first target will most likely be the support at 1.6715 – 1.6720, and if the pair succeeds in breaking below that level it might test the previous low at 1.6604.