Sent to fxstreet yet not posted. To bad, the day’s trade signals worked perfectly. C’est la vie
The most important break point today for GBP/USD is located at 1.3277. Yet solid resistance exists at 1.3225, 1.3230 to 1.3239, then 1.3245, and 1.3255. To see a GBP/USD downtrend resume then 1.3185 must break. Any price above 1.3185 then GBP/USD travels in neutral zones between 1.3185 and big point break at today’s 1.3464.
What 1.3464 means is breaks must be seen at 1.3324, 1.3254, 1.3219 and 1.3202. Further to 1.3464 is GBP/JPY approaches its big break at 140’s, NZD/USD 0.7440, AUD/USD 0.7803, EUR/JPY 116.39. The import is the vast majority of the major pairs and Yen cross pairs are at or fast approaching vital break points. GBP/USD for example on a break of 1.3464 will travel to 1.3700’s. If one currency pair breaks its major points then all will follow.
On the bottom side 1.3148 and 1.3150 is today’s bottom until the noon hour. The lowest we are looking at today is 1.3116. Why is 1.3116 vital is because its the inflection point to 1.3053. GBP/USD again lies on a big solid base at 1.2600’s.
GBP/JPY Must break today 133.33 to travel higher. This destination is achieved by breaks at 132.80 to 132.91 then 133.01, 133.10 and 133.33. Current resistance built in today is rough and solid.
Overall the big point break in GBP/JPY is 140.06 and begins to achieve this location by breaks at first 133.84. Above 133.84 then neutral zones take over and further must breaks at 136.95, 135.39, 134.61, 134.22 and 134.03. Rough resistance exists at 133.84 to 134.00’s.
On the bottom, today is bottom point at 132.03. What 132.03 means is this holds above 131.58 and 130.88. Overall, GBP/JPY prices along with its 90% Correlated GBP/USD counterpart contains extremely low prices. Bottoms are extremely close because GBP/JPY so far experienced at 6.8% variation from its 180 drop and GBP/USD 3%.
Brian Twomey, Inside the Currency Market, btwomey.com