FX levels to watch – GBP/USD, EUR/USD, USD/JPY

It could be ‘bounce or bust’ time for cable and Eurodollar, as these pairs run into rising daily trendlines.

GBP/USD forex pair
Source: Bloomberg

GBP/USD looking bullish
The pair finds itself back at the rising daily trendline. Bulls could therefore look to take long positions around here with the expectation of gains, perhaps with a stop around $1.41.

A close below the trendline might be the catalyst for fresh bearish momentum towards $1.4050. A bounce would head towards yesterday’s high around $1.44, and then on to the month high $1.4514.

EUR/USD to test February highs
Here too, a rising daily trendline has been encountered. If this breaks then we could see a move to $1.11 and then down towards $1.10.

A bounce would suggest the $1.14 area, just above the February highs is to be tested. A short-term target on the downside would be the 16 March lows around $1.1070.

USD/JPY
With the USD/JPY price pushing higher yet again it looks like we could see the beginning of a new rally. The holding action over the past week above ¥111 indicates the ¥114 area is the next target, and then beyond this the 50-day simple moving average at ¥115. 

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