Advertisement
U.S. markets open in 6 hours 52 minutes
  • S&P Futures

    5,305.75
    -2.50 (-0.05%)
     
  • Dow Futures

    40,123.00
    -21.00 (-0.05%)
     
  • Nasdaq Futures

    18,496.00
    -7.75 (-0.04%)
     
  • Russell 2000 Futures

    2,135.50
    -2.90 (-0.14%)
     
  • Crude Oil

    81.81
    +0.46 (+0.57%)
     
  • Gold

    2,218.10
    +5.40 (+0.24%)
     
  • Silver

    24.75
    -0.00 (-0.01%)
     
  • EUR/USD

    1.0823
    -0.0007 (-0.06%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Vix

    12.78
    -0.46 (-3.47%)
     
  • GBP/USD

    1.2626
    -0.0012 (-0.09%)
     
  • USD/JPY

    151.3300
    +0.0840 (+0.06%)
     
  • Bitcoin USD

    70,059.32
    -275.85 (-0.39%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,931.98
    +1.02 (+0.01%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

GBP/JPY, GBP/USD Set for Test of Highs or Major Breakdown

Talking Points:

- British Pound benefits from higher running housing price data.

- GBPJPY, GBPUSD hold critical longer-term support for now.

- Forex economic calendar sees US Consumer Price Index on Tuesday.

To keep up with developments central banks and their policy changes, be sure to sign up for my distribution list.

The British Pound may be facing a critical test over the coming days, as it faces long-term trend support versus the Japanese Yen and US Dollar amid prices struggling near yearly highs.

In the case of GBPJPY, we've seen a number of runs towards the December highs short of ¥175.00 in 2014 that have thus far produced a series of lower highs, and now the uptrend from the November 2012 is in question. A range has formed between 169.50 and 170.50 the past several days to reference for longs or shorts.

For GBPUSD, the uptrend from the July 2013 low could be broken but that would require a more concerted move lower through 1.6620/30. Although today's UK inflation data came in mixed (with some true surprising upside in the housing figures), a move lower will require a further turnaround in US economic data. Yesterday's release of the March US Advance Retail Sales data is the first building block the US Dollar needs to 'bottom out.'

Read more: EUR-Crosses Face Test as Draghi Warns on Strength: EUR/USD, EUR/JPY

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX


original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

Advertisement