GBP/USD selling pressure awaits at 1.5940/50

By charmner charts

The sterling has followed suit in yesterday’s session and jumped from the zone at 1.5670 to the proximities of 1.5820 on the upbeat news from Greece and the possibility of a swap in the ECB holdings of Greek bonds. Market sentiment shifted to risk-on trade after the first half of the session in Europe, where risk aversion has prevailed, propelling the high-yielders to session highs towards the sunset of the American trading hours.

In the view of C.Harmer, analyst at Charmer Charts, the 1.5820 level should hold well the bulls’ attempts, expecting some selling pressure to drag the cross back to 1.5725/1.5700

“Now, if we do break 1.5840 on the topside we should be able to carry on higher with 1.5880 to 1.5910….If above 1.5910 we see 1.5940/50 but this should be the top and we would expect some strong selling pressure here”, she concluded.

USD/JPY finds support

After falling around 40 pips in the American session from 78.60/70 high zone to break 78.40 support and reach intra-day low at 78.18, the USD/JPY seems to have found support at this level with the pair moving in range between 78.20 and 78.35 where the january 25th high placed at 78.28

Break below 1.3150

EUR/USD has slipped back into the 1.3150s as the market digests the latest US data. Retail Sales might not have matched the consensus forecasts but the headline was positive to support the US unit. The pair is yet to break back below the 1.3150-mark but further US unit gains cannot be ruled out and this will put the EUR/USD 1.3127 session lows and the support into the figure in view below.

USD/JPY Breaks Below 77.50

USD/JPY’s rally from 76 support stalled at 77.80, where the market ranged between that resistance and 77.50 support. As the 2/13 US session got underway, it fell below 77.50. The RSI in the 1H chart also fell below 40, showing loss of bullish momentum. We have noted the 77.30 pivot as a key level and if price can break below 77.30, and fall below the rising trendline, we should be seeing a slide toward 77.00. Below that, a test of 76.55 could be next.

The market is inside of a range with resistance at 78.25, so any bullish outlook should be capped at this level for now. A break above 78.25 would be a strong bullish signal outside of the short-term. This can start with a failure to break below 77.00 and a break back above 77.80. Otherwise, below 77.00, we look at the 76.55 support, and then 76.00 again.

Euro breaks resistance

The EUR/USD has made a break higher through resistance,The next level higher is 1.32173.