Weekly Technical Analysis Report 23 December – GBPJPY played out nicely, bearish play seen on EURUSD

Weekly Technical Analysis Report 23 December – GBPJPY played out nicely, bearish play seen on EURUSD

1. Last week’s outlook on GBPJPY: Bearish play seen

On the H4 time frame, we are seeing bearish order flow, with prices forming lower lows and lower highs. On the H1 time frame, a pullback to the supply zone at 151.20 on the H1 time frame presents an opportunity to sell. This resistance area is in line with the 38.2% Fibonacci retracement, where we could see a reversal below this level to our support target at 149.80, in line with the 61.8% Fibonacci retracement. Keeping in mind that prices are testing a daily demand zone, a break above the current resistance zone at 151.20 could see a deeper pullback on the daily leg.

GBPJPY Charts (Note: Coloured candles represent our projection)
Before:

After:

Chart: https://www.tradingview.com/chart/GBPJPY/dZLoCvNb-Outlook-on-GBPJPY-Bearish-play-seen/

 

2. This week’s outlook on EURUSD: Bearish play seen

On the H4 time frame, prices are facing bearish pressure from its resistance zone at 1.13489 where we could see further downside. That said, we would also like to highlight the M30 demand zones at 1.13120 and 1.12976 where we could see a pullback before a further drop. Currently, prices are testing the demand zone at 1.13120 and a pullback to the resistance level at 1.13345 presents an opportunity for a short. Ichimoku cloud is showing signs of bearish pressure as well.

Outlook on EURUSD: Bearish play seen by Salzworth on TradingView.com