GBP/USD
Open 2.0274 High 2.0334 Low 2.0154 Close 2.0286
Good support is 2.0064, which is 62.2% correction of the climb 1.9963-2.0228. Following is the broken top from 17 August 1.9935, after which support is the bottom from 22 August 1.9808. In upward direction resistance is the top from Friday 2.0227, after which comes the top from 9 August 2.0392. Break at the last level leads to test of the 26 year top at 2.0645.
Technical resistance levels: 2.0227 2.0392 2.0642
Technical support levels: 2.0064 1.9935 1.9808
Trading range: 2.0250 - 2.0335
Trend: Upward
Buy at 2.0264 SL 2.0234 TP 2.0324
Already made +25 pips profit on GBP/USD today from the following signal:
6:52 GMT Buy GBP/USD at 2.0264 SL 2.0238 TP 2.0324 exited at 7:39 GMT
Weekly Trend direction: Bullish
Weekly trend reversal level: 1.3550
Strategy: Whilst above the weekly trend reversal level, buy dips to support levels after an entry signal.
Medium term: The euro has broken above the large flag formation which has dominated the technical picture in 2006. Now, whilst above 1.2900 (1.2800 max), the euro remains in an uptrend which is heading back towards 1.3800, and possibly higher still, towards 1.4100.
Today's trade suggestion: Powering up to 1.3800 and just 60 pips shy of the all-time high at 1.3860, the euro 'should' have another bash at taking 1.3900 this week. If we do manage this, the next stop is probably 1.4100. Remain bullish and look to buy dips after a clear G7 entry signal, but keep stops tight and be nimble with profit-taking. As we approach these extreme levels, volatile swings in both directions are possible and even likely. 1.3550 and 1.3350 are now very key support areas and whilst above here, expect continued upside probing. Below 1.3550 means a medium term top might just be in place and momentum should remain bearish for some time.
Key G7 Support levels: 1.3550
Counter-trend opportunities: Sell 1.3860
USD/JPY
Open 113.32 High 115.61 Low 113.02 Close 114.45
Support is the bottom from 12 August at 111.5, followed by 110.05, which is 62.2% correction of the climb 111.65 - 124.08. Next support is the bottom from May 2006 109.08. In upward direction resistance is the broken bottom at 113.93, followed by 115.37, which is 61% correction of the drop from 117.15 to today's bottom at 112.62.
Technical resistance levels: 113.93 115.37 116.96
Technical support levels: 111.58 110.05 109.08
Trading range: 113.80 - 113.10
Trend: Downward
Sell at 113.70 SL 114.00 TP 113.20
